medium · Private Credit & Debt loan-structures-instruments
An analyst is calculating 'Free Cash Flow to the Firm' (FCFF) for a DCF valuation.
Which of the following is the correct starting point and adjustment sequence?
- EBIT × (1 - t) + D&A - Capex - Δ Working Capital
- EBITDA minus Interest minus Taxes minus Capex spend
- Revenue minus COGS minus SG&A minus D&A expense
- Net Income + Interest - Capex + Dividends paid out
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