Just need to check investment, following, includes, interest, payments

segalm

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

CPATrader

Agreed, I guess it just seems like it has to be A.

kingstongal

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.

That is your difference.

CP

hassan

Has to be A.

Interest is an operating expense. Interest Payments are also different.

WCInv is subtracted from both.

tianxin

LEAST LIKELY A DIFFERENCE.

YAhmed

interest is most definitely not an operating expense, unless your a financial institution.

WarrenB1

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?