This is the most comprehensive video I've seen on FCFF/FCFE calculation. Thank you! I have my Business Valuation exam a couple of days away and this video has come across as a lifesaver! The use of different colours for different terms and their layout on the screen helps to remember the formula.
CFO is not associated with purchasing and selling of Fixed Capital Investment as they form part of Investing Activity, then why do we need to subtract it?
@shaarangshringarpure947 жыл бұрын
Jigyasa Maheshwari The purpose is to find out the cash that will be available for both debt and equity holders to derive the value of the firm.CFO only takes into account operating cash inflows.There will also be some capex for the company every year.That needs to be subtracted from the CFO to arrive at the cash that the firm is generating every year for both the debt abd equity holders.
@dhana50046 жыл бұрын
Sir.......why interset added
@adnansaddique15446 жыл бұрын
with due respect i just want to say this wc investment is in negitive so the sign is netigive too so it is plus....?
@800pizza14 жыл бұрын
I would have thought the same, now I am confused
@abhisheksrivastav673010 жыл бұрын
i love this way of teaching...thank you
@FintreeIndia6 жыл бұрын
abhishek srivastav thank you for the feedback
@karthikprasadav1124 жыл бұрын
Sir, fixed cash investment is already adjusted in working capital ,then why we need to subtract seperately?
@yadavshiv8676 Жыл бұрын
Hie Karthik aap apna numbere do na aapse baat karna hai cfa se related .
@harshrojde82834 жыл бұрын
THANK YOU!!! I finally understood why interest is added back😅😅
@dimplepatel87144 жыл бұрын
Sir.... please make video about equity research....career scopes, is fintree provide this course??
@myduyencao69632 жыл бұрын
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@nalini.20234 жыл бұрын
Extremely good explanation
@Gus_the_Sage4 жыл бұрын
Please does Fixed capital investment refer to only PPE or the whole non current asset in the balance sheet
@animeshchatterjee7162 жыл бұрын
Thanks for this video🤩
@vishalsadavarte4283 жыл бұрын
best explanation sir..
@mohitagarwal2204 жыл бұрын
We nicely explained!
@HappySoul03693 жыл бұрын
If its a loss making firm and no tax is paid for that year, do we need to add back interest (1-t) while calculating FCFF?
@abhisheksukhatme73383 жыл бұрын
yes if tax carryforward is allowed
@nishangrero66966 жыл бұрын
Pronunciation is very bad and unclear. Not explain to the point.