CFA CFA Level 2 Question of the Week: Level 2 – Equity Valuation (1)

Question of the Week: Level 2 – Equity Valuation (1)

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    • Avatar of MarkMeldrumMarkMeldrum
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        The correct answer is Option B.

        The analyst can find FCFF from FCFE by adding after-tax interest expense and subtracting net borrowing.

        FCFF = FCFE + Int(1 – Tax rate) – Net borrowing

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