free cash flow

sjzhqs

free cash flow to the firm,为什么在计算过程中，必须把财务费用I*(1-t)加回到FCF中去？

谢谢。

chinese365

excellent answer

jessyxia

this is the interest expense after tax effect you have deducted from net income. you need to add it back because cash flow to the firm should include cash flow to the lenders, ie . interest.