Question
Suppose you are estimating a growth rate of FCF within the corporate value model. You noticed that the firms FCF has been declining in the
Suppose you are estimating a growth rate of FCF within the corporate value model. You noticed that the firms FCF has been declining in the past three years while its NOPAT and operating capital have been steadily increasing over the same time period. 1) What could be the reason for the decline in FCFs, and 2) what can you say, in general, about the future FCF growth rate?
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Reasons for Declining FCF with Increasing NOPAT and Operating Capital Several factors could be driving the decline in FCF despite rising NOPAT and ope...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
