easy · Corporate Credit Analysis

Which statement best summarizes the 'Unlevered' nature of FCFF?

  1. It means the company has no liabilities on its balance sheet.
  2. It means the firm is not allowed to borrow money from banks.
  3. It refers to cash flow that has not yet been taxed by the government.
  4. It views the company as if it were financed entirely with equity, removing the noise of debt and interest.

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