P4 – Bpp – Question 42 – FLY 400

This topic has 5 replies, 2 voices, and was last updated 11 years ago by John Moffat.

Viewing 6 posts - 1 through 6 (of 6 total)

Author

Posts
November 18, 2014 at 11:19 am #210969
Shota
Member
- Topics: 3
- Replies: 5
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
November 18, 2014 at 4:02 pm #211031
John Moffat
Keymaster
- Topics: 57
- Replies: 54858
It 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)
November 18, 2014 at 5:10 pm #211070
Shota
Member
- Topics: 3
- Replies: 5
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,
November 18, 2014 at 6:56 pm #211087
John Moffat
Keymaster
- Topics: 57
- Replies: 54858
Because none of them will be expected to continue into the future – it is the future FCFE that we are trying to calculate.
November 18, 2014 at 7:25 pm #211102
Shota
Member
- Topics: 3
- Replies: 5
Logic is very clear.

Thank you a lot.

BR,

Shota giorgadze
November 19, 2014 at 4:52 pm #211304
John Moffat
Keymaster
- Topics: 57
- Replies: 54858
You are welcome, Shota 🙂
Author

Posts

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.