easy · Corporate Credit Analysis
Which statement best summarizes the 'Unlevered' nature of FCFF?
- It means the company has no liabilities on its balance sheet.
- It means the firm is not allowed to borrow money from banks.
- It refers to cash flow that has not yet been taxed by the government.
- It views the company as if it were financed entirely with equity, removing the noise of debt and interest.
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