How to calculate free cash flow?
1 Answer(s)
Binny
FCF typically indicates the operating cash flow of a company - essentially cash flows from the companys key business operations. Now dividends are a non-operating expense - meaning dividends are not core to the operations of a company. If you stop paying dividends then nothing is going to affect the companys core business hence it is not included in DCF FCF number.
Jan 16 2013 11:14 PM