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3 Cards in this Set
- Front
- Back
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Calculate Free Cash Flow to Equity (FCFE)
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FCFE = Net Income - Net Capital Expenditures - Change in Net Working Capital + New Debt - Debt repayment.
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Define Free Cash Flow to Equity (FCFE)
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Measure of how much cash can be paid to the equity shareholders of a company after all expenses, reinvestment and debts are paid. Used by analysts to value a company. (Especially if no dividend) Want to see that dividends are paid from FCFE and not some other form of financing. |
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