Would just like to ask why Depreciation is omitted from the DR Ratio-computed FCFE formula? (subtracted with (1 - DR) x (FCInv - Dep) portion and not added back (same with other NCC)
Since this is computed right from the Net Income itself, which in the original FCFE formula (from NI) adds back depreciation, why is that the case? I understand why Net Borrowing is omitted in the DR computation