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Polit paper Dec 2006 Q1 FCFE

This topic has 1 reply, 2 voices, and was last updated 14 years ago by John Moffat.

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May 30, 2010 at 9:42 am #44268
danielng2008
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I wonder why the FCFE in 2005 is $87.2M which is just deducted the capital expenditure. Per the Kaplan text (P174), it should also be deducted the repayment of loan ($31M) and added the disposal of the JV($10M). Also further how about the deposit of $35.5M? Could you help me to clear this problem?
May 30, 2010 at 3:07 pm #61663
John Moffat
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The reason is that they are trying to forecast the FCFE for 2006 onwards.
Although they did repay a loan in 2005 and also dispose of the JV, these are not things that will be repeated in the future. (Similarly the change in short-term deposits)
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