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Kodiak BPP40

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Kodiak BPP40

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • August 12, 2018 at 6:57 pm #467463
    richardscully
    Participant
    • Topics: 197
    • Replies: 145
    • ☆☆☆

    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
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    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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  • The topic ‘Kodiak BPP40’ is closed to new replies.

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