LiquidAssets10

BJ,
The easiest way I’ve seen it was in secret sauce:
FCFE = CFO  FCINV + net borrowing
FCFF = CFO  FCINV + int(1t)
Of course, CFO = NI + noncash charges + depreciation
I remember that the interest expense is added back to FCFF because the debt holders are involved.
By the way, can anyone give an intuitive definiiton for what these two actually mean? Yes, I know is cash available to the firm or to equity holders, but what’s perhaps an easier simpler way to interpret it?