the amortization of a bond discount should be added back to net income, and the accretion of the bond premium should be subtracted from net income to caculate FCFF, why?作者: shxjm 时间: 2011-4-22 18:25
是不是这样理解.
因为 coupon payment is reported as operating activities in the cash flow statement
对于 discount bond, coupon payment > interest expense, 所以( coupon payment - interest expense) 应该 add back to net income.
而对于 premium bond, 因为 coupon payment < interest expense, the difference can be viewed as a source of borrowing, 所以应该 subtract from the net income.作者: pliao2005 时间: 2011-4-25 11:35
