when calculate FCFF, do we need to add back the disposition of property, plant and equitpment? thanks.作者: dece2011 时间: 2013-4-12 21:23
If you only sold existing PPE and didn’t invest in any further PPE, yes you would add it back.
FCFF: NI+NCC+[int(1-Tax Rate0)]-FcInv-WcInv. If you disposed PPE (again assuming you’re there’s no net investment in fixed capital) you would add it to FCFF.作者: amqata 时间: 2013-4-12 21:23
Re: Equity: FCFF new
Posted by: markCFAIL (IP Logged) [hide posts from this user]
Date: June 3, 2010 04:36PM
Thats what i was saying brazil, the text (at least schweser and i believe CFAI) says you net the two, but i did a CFAI mock that used only the expenditure and did not net out the disposition, which i believe is incorrect.”
Would you happen to know what question that was?
