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2. FCFE = NI - [(1 - DR) x (FCInv - Dep)] - [(1 - DR) x WCInv], where DR = target Debt-to-Asset ratio

This tells you what portion of invested capital (Net PPE + WCInv) will be financed by debt (since equity funding doesnt impact FCFE)

If you take the FCFE equation
FCFE = NI+ Dep - FCInv - WcInV + Net Borrowings
Net Borrowings = DR(FCInv - Dep + WCInv)

So FCFE = NI+ Dep - FCInv - WcInV + DR*(FCInv - Dep + WCInv)
FCFE = NI+ Dep - FCInv - WcInV + DR*Fcinv - DR*Dep + DR*WCInv
FCFE = NI + Dep - DR*Dep - FCInv + DR*Fcinv - WcInV + DR*WCInv
FCFE = NI + Dep*(1-DR) - FCInv*(1-DR) - WCInv*(1-DR)
FCFE = NI - (1-DR)*(FCInv - Dep)*(WCInv)
FCFE = NI - (1-DR)*(FCInv - Dep) - (1-DR)*(WCInv)