formula for FCFF

FCFF=Net income -(1-DR)*(FCInv-Depreciation)-(1-DR)*(WCinv) what does DR refer to? Thanks.

debt ratio…are you getting ready for L2/09? Keener!

hahaa

if finaced by 40% of debt, then we should plug in (1-0.4), is it, it is not debt/equity ratio? Thanks. 3_letters Wrote: ------------------------------------------------------- > debt ratio…are you getting ready for L2/09? > Keener!

DR is “a” debt ratio, but it is target debt-to-assets.

This is used as a tool to forecast FCFE, not FCFF

Good catch, I didn’t even see he had written FCFF.