Dear Tutor,
In P4-BPP- Question 42 bart B FCFE is taken 87.2m
I believe this figure is
101.7+31-35.5-10=87.2
Can you explain why each of them isn't included in FCFE.
or if 87.2 is derived in another way could you explain it please.
thank you in advance.
BR,
Shota Giorgadze
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P4 - Bpp - Question 42 - FLY 400
11y ago#1It is the net cash flow from operating activities (210.0), plus the net interest of 1.5, less the tax of 4.1, less the capital expenditure of 120.2. (All the figures are taken from the statement of cash flows)
Thank you for the answer.
Can you write briefly please why 10 , 35.5 and -31 aren't included in FCFE.
Thank you in advance.
Br,
11y ago#3Because none of them will be expected to continue into the future - it is the future FCFE that we are trying to calculate.
Logic is very clear.
Thank you a lot.
BR,
Shota giorgadze
11y ago#5You are welcome, Shota :-)
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