What is the Capital Cash Flow
What is the Capital Cash Flow?
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The capital cash flow is the flow obtainable to all holders of securities of the company as debt and shares and this represents the sum of the cash flow obtainable to shares (CFac) and of the cash flow which belongs to debt holders (CFd). The expression that relates CCF along with FCF is as given:
CCFt = FCFt + Dt-1 rt T
I think Free Cash Flow (FCF) can be acquired from the Equity Cash Flow (CFac) using the relation as: FCF = CFac + Interests – ΔD. Is it true?
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