Bit confused regarding the tax rate to use to generate UFCF. Do you rather take the absolute cash taxes from the cash flow statement or the implied tax rate from the income statement and apply the implied tax rate to the EBIT?
Thanks
Does anyone know more on this please?
What do you mean by UFCF? I don’t see that in the curriculum.
Unlevered free cash flow
It appears that they’re using the (implied) tax rate times EBIT.
On the exam, they’ll give you the tax rate, so you won’t have to work it out.
By the way, I’m seeing this in Corporate Finance, not FRA.