CFA Practice Question

CFA Practice Question

Free Cash Flow to Equity is:
A. OCF - Net Payments to Debtholders + Net Payments to Preferred Stockholders
B. FCFE = Net Income - Net Capital Expenditure - Change in Net Working Capital + New Debt - Debt Repayment
C. OCF + Net Payments to Debtholders + Net Payments to Preferred Stockholders
Explanation: OCF - Net Payments to Debtholders - Net Payments to Preferred Stockholders

User Contributed Comments 2

User Comment
harrybay No way it's B. You need to add back depreciation to get cash flow. A makes more sense.
ConnerVP1 - (Net Capex)
- (Gross Capex-Depreciation)
- Capex + Depreciation
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