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Free Cash Flow to Firm (FCFF) is typically defined as:
AEBITDA + Interest paid − Tax on EBITDA
BNet Income + Depreciation + Capex + Δ Working Capital
CEBIT × (1 − t) + Depreciation − Capex − Δ Working Capital
DDividends paid + Interest + Tax on dividends
Answer & Solution
Correct answer: C. EBIT × (1 − t) + Depreciation − Capex − Δ Working Capital
1. Identify what the question asks: this concept maps to fcff (§3.3).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 13 "Business Valuation"_
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