krokodilizm
New member
- Jun 18, 2026
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Has anyone come up with a foolproof method of retrieving the following in the exam?
FCFF = NI + Dep + [Int x (1 — tax rate)] — FCInv - WCInv
FCFF = [EBIT x (1 - tax rate)] + Dep - FCInv — Wcinv
FCFF = [EBITDA x (1 - tax rate)] + (Dep x tax rate) - FCInv - WCInv
FCFF = CFO + [Int x (1 - tax rate)] - FCInv
FCFE = FCFF — [Int x (1 — tax rate)] + Net borrowing
FCFE = NI + Dep — FCInv — Wclnv + Net borrowing
FCFE NI — [(1 — DR) x (FCInv— Dep)] - [(1 - DR) x WCInv]
They all make sense and look trivial but given a page of P&L and BS data it is very easy to omit or double account a component. So how do you remember all thes other than by brute memory?
FCFF = NI + Dep + [Int x (1 — tax rate)] — FCInv - WCInv
FCFF = [EBIT x (1 - tax rate)] + Dep - FCInv — Wcinv
FCFF = [EBITDA x (1 - tax rate)] + (Dep x tax rate) - FCInv - WCInv
FCFF = CFO + [Int x (1 - tax rate)] - FCInv
FCFE = FCFF — [Int x (1 — tax rate)] + Net borrowing
FCFE = NI + Dep — FCInv — Wclnv + Net borrowing
FCFE NI — [(1 — DR) x (FCInv— Dep)] - [(1 - DR) x WCInv]
They all make sense and look trivial but given a page of P&L and BS data it is very easy to omit or double account a component. So how do you remember all thes other than by brute memory?