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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Vogel co
why interest is ignored while calculating free cash flow to firm?
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.
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