hard · Principles of Finance capital-budgeting
Which of the following is a 'common' mistake when calculating FCFF starting from EBITDA?
- Subtracting D&A from EBITDA before applying the tax rate.
- Including the Interest Expense in the EBITDA figure.
- Adding back CapEx as a non-cash investment item.
- Forgetting to add the Depreciation Tax Shield (D&A × t).
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