tikfed

In my opinion, the above responses are way more complicated than they need to be. The bottom line is fcff is used to identify the cash available to all providers of capital, which includes debt holder
s.

So we add back the interest component because thats whats available to all providers of capital. We use the aftwr tax amount because of the tax shield.

note, that we may not actually add it back of the firm is reporting under IFRS and they include the interest component in financing activities.
(typed on my phone)