yospaghetti

"Note that I didn't think you meant to add the Net Borrowing adjustment to the original formula #2 - that would completely throw it off."

yes i did meen to add it, but i said first you remove (1-dr) from inside the formula...
so insted of accounting for the new debt with the (1-dr)
you add the new borrowing explicty

the amount you would need to add to get the same effect is

new debt=dr*(fixed cap-dep+working cap)

this is just simple math my friend, to me it is as clear as 1+1=2
but maybe i suck at getting the point accross...

if this takes you long, move on and know that nothing big is being done there...
so basiclly if insted of using formula 2
you opened an excel spread sheet and started to say
okay, this year we have this much capx, this much working cap, and we want to borrow 40% of them, and thus add that much to your fcfe, you would get the exact same result

god it sucks to watch someone not getting something and being unable to get the point accros lol...