RobertA

As a followup up to the original question, why is net debt not also added to FCFF?

FCFF=CFO + Interest(1-tr) - FCI
FCFE=CFO + Net borrowing - FCI

I understand interest paid would not be available to common shareholders, which is why it is not in FCFE. But, the net borrowing element should be available to the entire firm, if it is available to common shareholder -- right? I am probably missing something, thanks in advance.