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kodiak BPP 36

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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August 14, 2018 at 6:45 pm #467860
richardscully
Participant
- Topics: 197
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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?
August 15, 2018 at 12:00 am #467885
John Moffat
Keymaster
- Topics: 57
- Replies: 54835
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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