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: RMontgomery 时间: 2013-4-8 15:43
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
