discretionary capital expenditure

CFA Level II
#1

what is discretionary cash flow and what is discretionary capital expenditure? Thanks.

#2

Disc. CF is FCF - Dividends… NI +NCC =Funds from Ops. +decrease in noncash CA +increase in nondebt CL =Op. Cash Flow -Cap. Exp. =Free Cash Flow -Dividends =Disc. Cash Flow -Acquisitions +Asset Disposal +Other Souces (Uses) =Prefinancing CF

#3

what is non-discretionary capital expenditure? Thanks. chadtap Wrote: ------------------------------------------------------- > Disc. CF is FCF - Dividends… > > NI > +NCC > =Funds from Ops. > > +decrease in noncash CA > +increase in nondebt CL > =Op. Cash Flow > > -Cap. Exp. > =Free Cash Flow > > -Dividends > =Disc. Cash Flow > > -Acquisitions > +Asset Disposal > +Other Souces (Uses) > =Prefinancing CF

#4

Never heard of it before…or if I did, I sure dont remember… anybody else know?

#5

It is in CFA books…but i don’t think this is important stuff…you can’t remember every little thing.