Q2- Investments made abroad

AFM

Sir, as 45% of the funding is through debt, should we also not account for its finance cost before arriving at PAT? Video Details ------------- Advanced Financial Management - AFM International Financial Management #9. Illustration # 2 Investment in Nepal

Venky Balamurali

Qualified CA

★ 0

08-Apr-24 12:42

271

Answers (1)

Q is solved using FCFF approach - Free cash flow to firm. Debt servicing is ignored and PV of FCFF is compared against total funding cost (D + E)

Sriram Somayajula

Admin

08-Apr-24 13:48