Cash Flow Contradistinctions

Commercial Lending Review, March-April 2008

6 Pages Posted: 13 Jun 2009 Last revised: 17 Mar 2014

See all articles by Harlan D. Platt

Harlan D. Platt

Northeastern University - Finance and Insurance Area

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

Platt, Harlan D., Cash Flow Contradistinctions. Commercial Lending Review, March-April 2008, Available at SSRN: https://ssrn.com/abstract=1418693

Harlan D. Platt (Contact Author)

Northeastern University - Finance and Insurance Area ( email )

Boston, MA 02115
United States
617-373-4740 (Phone)
617-373-8798 (Fax)

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