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    Business
  3. Study Set
    New Venture Creation
  4. Exam
    Exam 5: Opportunity Recognition
  5. Question
    _____ Is Defined as Earnings Before Interest but After Taxes
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_____ Is Defined as Earnings Before Interest but After Taxes

Question 2

Question 2

Short Answer

_____ is defined as earnings before interest but after taxes (EBIAT)plus amortization (A)and depreciation (D)less spontaneous working capital requirements (WC)less capital expenditures (CAPex)or FCF = EBIAT + [A + D] - [+ or - WC] - CAPex.

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