Why do we incorporate changes in working capital when calculating FCFs in the DCF Analysis? If working

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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?

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Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Apr 02, 2024 06:08 AM

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Why do we incorporate changes in working capital when calculating FCFs in the DCF Analysis? If working

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In discounted cash flow DCF analysis we incorporate changes in working capital because changes in wo... View the full answer

Financial Accounting and Reporting a Global Perspective

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