Question: Why do we incorporate changes in working capital when calculating FCFs in the DCF Analysis? If working capital is decreasing do we add or subtract

Why do we incorporate changes in working capital when calculating FCFs in the DCF Analysis? If working capital is decreasing do we add or subtract it when calculating the FCF? Why?

Why do secured debt instruments have a lower coupon than unsecured debt instruments in the same capital structure? Name a couple of negative covenants in a LBO and explain what is their role?

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