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kodiak BPP 36

RRichard7y ago
Dear Sir I notice the layout of the cash flow forecast is it ok to do the same layout as a statement of P&L with the interest after the PBIT figure and also if i use WACC then i just multiply x . whatever the equity is?
John MoffatJohn MoffatTutor7y ago#1
But why do you want to use the WACC? The question asks for the free cash flow to equity (and the layout doesn't matter) and asks you to base the value on this, and so you discount by the cost of equity (as I explain in my lectures).
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