I have a query regarding the net borrowings used for FCFE calculation. We generally assume the net borrowings as a (D/A) ratio times the investments required for CAPEX & Working capital. We subtract the CAPEX (FCInv) & the WC Investments from the FCFF. Sorry if this was asked before, but I can’t understand why we would add the borrowings used to finance the above 2 line items. As i understand, that borrowing is already ‘used’ for the above 2 items, and hence might not be available for distribution to the equity shareholders, right ?