FCFE using Forecasting

[dtrynoski]

In the CFAI question 12, they use the following equation to estimate FCFE
FCFE = NI - Capital expenditure - WCinv + New debt financing.
Other problems they use FCFE = NI - (1 - DR) * FC - Dep + WC)
How do we know what method to use on the exam? This question gives you information to calculate it either way but the answers differ.

 

[Northeastern Student]

it would ask for something like “proforma FCFE” or you would be given a target DR and asked something in relation to FCFE.
The one with the target is used for forecasting where the “normal FCFE” is the one that starts with NI