FCFE

[noseykibitzer]

Do we need to know anything about free cash flow from equity

saw a question on it but didn't see it in the program LOS's

Thanks

 

[lev]

If you mean Cash Flow to Equity Holders, it is found as Dividends - (New EQ Issued - EQ Retired) if I recall right. No, I haven't seen it in any LOS.

Overall, Cash Flow to Assets = Cash Flow to Debt Holders + Cash Flow to Equity Holders.

 

[CFAHouston]

There's a LOS in session 7 to describe and compute free cash flow.

 

[noseykibitzer]

That's cool...no biggie its just a share valuation on a discounted FCF model with terminal value.

Didn't see that stuff on equity valuation side so I guess not. Thanks!