in course 8, business valuation modeling, section “valuation multiple”, slide 6/13, to find the FCFF.
The formula given by the FMVA is
FCFF = EBIT (1 - t) + D&A - Change in WC - Capex
they got 300 for NWCI (working capital) and 150 for FCI (capex).
The only explanation given by the lecturer is (from the video transcript).
“working capital are 300 as a net reduction of cash and the capital expenditures were 150 as a reduction of cash.”
Given the B/S and the income statement, I have no idea how to get the 300 and 150 from the financial statements.
I have attached picture of the slide and the financial statement.