• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Nente Co (June 12)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Nente Co (June 12)

  • This topic has 3 replies, 2 voices, and was last updated 9 months ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 8, 2024 at 8:38 pm #709305
    Aleksandra19900107
    Participant
    • Topics: 22
    • Replies: 28
    • ☆☆

    Dear Mr Moffat,

    in the Nente Co question, in the FCFF calculation – why don’t they consider interest expense either for net cash flow (they don’t deduct % expense from PBIT) or in the tax calculation (in the answers they just apply 20% to the PBIT = 1230000*20%)?

    Thank you!

    August 9, 2024 at 7:56 am #709321
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    For free cash flows we need to the cash flow available to all investors (equity and debt) and so we always take the cash flows before interest.

    It is only when calculating the free cash flows to equity that we take account of the interest (because we are then looking at the cash available just for equity).

    I do explain this in my free lectures 🙂

    August 10, 2024 at 8:30 am #709443
    Aleksandra19900107
    Participant
    • Topics: 22
    • Replies: 28
    • ☆☆

    Thank you Sir,

    yes, I believe I mixed the FCFE and FCFF, but now I have drown the two models to memorize, thank you.

    My strong accounting background is tricking me here as you always want to correctly calculate the net profit…

    Thank you.

    August 10, 2024 at 5:25 pm #709461
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Nente Co (June 12)’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mrjonbain on What is Assurance? – ACCA Audit and Assurance (AA)
  • Ejueyitsi-Toju on What is Assurance? – ACCA Audit and Assurance (AA)
  • sadik.sadka on How to make the best use of OpenTuition
  • SONIC916 on Lessee accounting – ACCA (SBR) lectures
  • AkinMike on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in