CFA CFA Level 2 Corporate finance cash flow conundrum

Corporate finance cash flow conundrum

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    • Avatar of ensenmasonensenmason
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        • CFA Level 2
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        You’re exactly right.  Not sure why I didn’t see it.  It was late.  Yeah thats it…. 😉 Thanks.

      • Avatar of Stuj79Stuj79
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          Without looking at the question as I don’t have the curriculum in front of me, my guess would be that you are failing to add back depreciation after deducting taxes from EBIT.

          You multiply EBIT by 1 – tax rate, and then add back depreciation to get the after tax operating cash flow for the year. 

        • Avatar of Stuj79Stuj79
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            No probs 😉 happy to help!

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