anybody here familiar with FCFE model?

Question

anonymous · Answer

yes how can I help?

anonymous · Answer

Can you elaborate on your question. Glad to help buddy.

anonymous · Answer

According to Damodaran (2002), the equity valuation model discounts the expected free cash flows to the equity (that are what result after the firm meets “all expenses, reinvestment needs, tax obligations and net debt payments”), using a discounting rate that represents the rate of return required by the equity owners, i.e., the cost of equity.

$$Value of Equity = FCFE/(K _{E _{}}-g)$$
FCFE = Net Income - Net Capital Expenditure - Change in Net Working Capital + New Debt - Debt Repayment

anonymous · Answer

FCFE is 
Net Income+NCC (non cash charges such as D&A) - change in working capital investments which resulted CFO (cash flow from operations.
further we add interest*(1-marginal tax rate) and deduct change in fixed capital investment which resulted FCFF
then we deduct interest*(1-marginal tax rate) which we added and will ad net borrowings which resulted FCFE