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?
Ask the Tutor ACCA AFM
Kodiak BPP40
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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