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1. in the question (c) (i), it asks us to calculate operating free cash flow.
Is operating free cash flow same as operating free cash flow ?
2. in P4, can i understand as
Free cash flow to the firm = operating free cash flow to the firm??
Free cash flow to the equity = operating free cash flow to the equity ???
3.in (C) (i), how do we get the 0.5 in the working 3 of PV of lost export cash flows ?
4. where can i find the information of PV of investment for expansion and 48million because this was not shown in the notes…
5. why is synergy included in the present value of the operational free cash flows ??
shouldn’t we separate them out like other operating free cash flows item ?
I don’t know where you are finding this question, because the original exam question did not have a part (c). In my edition of the BPP Revision Kit, they have added a part (c), but it has nothing to do with what you are asking in your first question.
Part (a) does ask for the free operating cash flows – and yes that means the same as free cash flow to the firm (which the question then asks you to take an APV approach one).
Note 17 in the question says that half of the exports will be diverted.
Synergies are included because they are valuing Oberberg for the purpose of acquisition, and synergies will arise if they acquire.
It doesn’t make any difference where you show them in the calculations – the final result will be the same.
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