CFA Mock FCFE calculation question

CFA Level II Equities
#1

In the item set Alahtab, I calculated FCFE using this formula: NI + D -CapEx - change in WCInv + Net borrowings.

The solution calculates it as EBITDA (1-T) + D(T) - CapEx - change in WCInv + Net borrowings.

I believe both are correct but I got different answers: I got 51.5 MM FCFE while the solution has 46.24. What am I missing here? I can’t figure out why they’re different. Appreciate the help.

#2

tax rate is different, use the tax rate given in the question whenever possible, the last way to do is to calculate tax/EBT

#3

Welcome to one of classic CFA traps (or as the senior like to call it we didnt read the question carefully…)!!

#4

wow. that’s good… thanks.