reading 46, page 689, question 9:
the solution include the capital expenditures on current sale which is 125% of depreciation to support the current level of revenues.
I don't think it should included in the FCInv, which only include the net change of fixed investment. isn't it? Thanks.作者: jacksparrow 时间: 2011-7-11 19:44
No, you subtract both of those capex requirements....NOT the change. Normally when calculating FCFF or FCFE you deduct the CHANGE in WORKING CAPITAL, not FCinv/capex
