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Kodiak BPP40

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

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August 12, 2018 at 6:57 pm #467463
richardscully
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Sir
I did a calculation for revision purposes of FCF to equity while using the method of not deducting interest but deducting the debt from the value and came up with a figure 69 different. Are they meant to be exactly equal?
August 13, 2018 at 5:47 am #467636
John Moffat
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But for free cash flow to equity, we do deduct the interest. We only deduct any repayment of debt – not the debt itself.
The answer in the book is correct.
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