Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA AFM

Kodiak BPP40

RRichard7y ago
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?
John MoffatJohn MoffatTutor7y ago#1
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.
This topic is locked — no new replies.