Why multiply by (1-T) for free cash flow?
When calculating the free cash flow for a company, the equation is:
FCFF = EBIT (1-T) + Depreciation & Amortization – Capex – Change in NWC
Why do we multiply EBIT by one minus the tax rate? Is it because interest payments are tax-deductible?
By: Michael Sand
About the Author:
Dion Rod
try
No Credit Report required, Bad credit ok
:: No collateral required
:: No Upfront fee
:: Simple Application process
:: No set monthly payment
:: No Application fee
:: Unsecured Mony
The education reference section under the education reference section under the education reference section under the homework category.
The homework category.