hi for FCFE CFO -FCinv -Wcinv + net borrowing - net debt repayment what qualifes as net borrowing or net debt repayment could you give some examples eg i was thinking proceeds from stock would be net borrowing but i got the answer wrong, i dont find much info in the text cheers

borrowing refers to debt. stock belongs to equity.

don’t get too hung up on the “net” part, that just means the total after you add everything together say you took out a $10 loan and a $40 loan, your net borrowing would be $50. If you paid off a $5 loan and paid off a $2 loan, your net debt repayment would be $7.

CFO -FCinv -Wcinv + net borrowing - net debt repayment are you guys sure you subtrac both fcinv and wcinv? schweser notes uses one and secret sauce uses the other, so i thought they were interchangeable?

wait a second here, the show NY is correct in that you don’t subtract WCInv after already calculating CFO: FCFE = CFO - FCInv + net borrowing - net debt repayment where CFO = NI + NCC - WCInv

Net borrowing is the net amount of borrowing “as of” end of that year. In a specific year you borrow some, you pay back some of what you borrowed in previous years. Take out what you repaid from what you borrowed that year+debt you accumulated previously, that’s your net borrowing.