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Vogel co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Vogel co

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • February 18, 2023 at 7:54 am #679070
    aakriti263
    Participant
    • Topics: 2
    • Replies: 0
    • ☆

    why interest is ignored while calculating free cash flow to firm?

    February 18, 2023 at 10:51 am #679089
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    It is always ignored because the free cash flow to the firm is the total available for both the shareholders and the long-term lenders. It is only when looking at the free cash flow to equity that interest is taken into account to arrive at the amount available for shareholders.

    Have you not watched my free lectures on this?

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