CFAI 2014 Mock PM equity

CFA Level II Equities
#1

I had thought that all FCFF formulas would get the same answer…

Question 2 in the 3rd item set about National…

They forgot to take the answer off, but they use NI + NCC + Interest (1 - tax rate) - FCINV - WCINV

This answer gets 121 according to them, but this isn’t adding up. WHAT THE HELL IS CFA doing??

But, i was using EBITA(1 - tax) + Depreciation expense (tax rate) - FCINV - WCINV , and getting a different answer…

Can someone look into this?

Thanks

#2

Nevermind, i got it… -(6) = +6…

#3

But back to this aqeustion…

Why is FCInv, the change in LT assets, and then you add back depreciation?

#4

FCInv should be based on gross fixed assets. They provide net so you need to add back depreciation.