FCFE: Fixed Assets and Depreciation

Reference: Schweser Mock Book 2 Exam 1 PM Q101

How do I know whether “Fixed Assets” are gross or net to calculate FCFE? Do we always assume net unless told otherwise??

Bump for answer. Do you assume that ‘fixed assets’ in the BS is net ppe unless otherwise stated? Got this question wrong as well.

I think the assumption is net given that the b/s should represent the book value of the asset.

^Fair enough. Will keep that in mind. Thanks.

FC Inv can be solved either way.

Gross would be straight forward - increase from last year gross PPE

If net is used than we have to add yearly depreciation again to this FC inv figure. Think, you have to invest additional amount (current deprication) to keep PPE in shape.