标题: Just need to check [打印本页] 作者: segalm 时间: 2011-7-11 19:36 标题: Just need to check
I think this question is a dud.
Which of the following is least likely one of the differences between FCFE and FCFF? FCFF includes adjustments to revenue for:
A) working capital investment.
B) interest payments to bondholders.
C) operating expenses作者: WarrenB1 时间: 2011-7-11 19:36
i might say (a).
It's which is least likely a difference between FCFF and FCFE - in regards to working capital investment, would this amount not be the same for both FCFF and FCFE? And therefore, its not a "difference" between the 2?作者: hassan 时间: 2011-7-11 19:36
Has to be A.
Interest is an operating expense. Interest Payments are also different.
WCInv is subtracted from both.作者: tianxin 时间: 2011-7-11 19:36
LEAST LIKELY A DIFFERENCE.作者: YAhmed 时间: 2011-7-11 19:36
interest is most definitely not an operating expense, unless your a financial institution.作者: CPATrader 时间: 2011-7-11 19:36
Agreed, I guess it just seems like it has to be A.作者: kingstongal 时间: 2011-7-11 19:36
why would it be a?
both FCFF and FCFE : WCInv needs to be deducted.
Operating Expenses : Are also deducted.
FCFF -> includes Interest payment addition. SO IT IS NOT DEDUCTED.
