ok, i’ve seen a couple problems where when you try to calculate FCFF (or FCFE), but fixed cap investment and working cap investment are not clearly stated, this is not a tough problem but it can get tricky (at least for me… =) ) what i do is I would calculate the working cap investment in this way: (current asset - cash) - (last year current asset - cash) fixed cap investment long term debt - last year long term debt OR sometimes it would say ‘plan, property equipment investment’ on the balance sheet, then take a difference of that too… what is your take on this? any other good way to tackle this problem?
i think you need to rework your WC strategy into counting CL CA - CL = net working capital… dont count cash as a CA either
working cap investment = change in non current assets - change in non current liabilities fixed cap invest = capital expenses this year - proceeds from sale of assets cap expenses this year = for every capital goods. years value on BS - last years value on BS f
you’re right about CL… just forgot, hehe