Present Value Free CF if too much cash
maybe someone can help me clearify a few things. Present Value (DCF) calculation assumes the reinvestment at IRR. What if a company piles cash?
Split FreeCF in a “productive” part and an “unproductive” one? But does that really makes sense as FreeCF is the capital a shareholder could “take home” without hurting the company’s operation?
Bit confused here, thank you for help.
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.