Cash Flow Contradistinctions
Commercial Lending Review, March-April 2008
6 Pages Posted: 13 Jun 2009 Last revised: 17 Mar 2014
Abstract
Four concepts of cash flow are discussed and compared: simple cash flow, operating activities cash flow, net operating profit after taxes, and free cash flow. The differences between these concepts are shown to be very large. Issues connected to terminal value are presented. Finally, the idea of not having to change WACC over time is discussed.
Keywords: Cash Flow, Free Cash Flow, Terminal Value, WACC
JEL Classification: G12, G30, G31, M41
Suggested Citation: Suggested Citation
Platt, Harlan D., Cash Flow Contradistinctions. Commercial Lending Review, March-April 2008, Available at SSRN: https://ssrn.com/abstract=1418693
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