The valuation of mergers and acquisitions (part 1) - ACCA (AFM) lectures

[@siddharthkrishna600]

Thank you, sir!

[@meenudesilva6499]

Thank you sir 😊

[@Harry-hk1pg]

Thanks for the excellent lectures. Can I ask why in the example 2, the loan repaid was not considered in the calculation of the free CF. when we repay the loan, it is money outflow, and should be subtract from it, right?

[@manojreddy_42]

hi harry, since we are calculating free cash flows to the firm (i.e. total cash flows not just for equity) no need to subtract the payments to the lenders.

[@Harry-hk1pg]

@@manojreddy_42 It make sense, thank you sooo much Manoj

[@AMAJ.B]

Thank you sir