What is the MAIN difference between Levered Free Cash Flow and Unlevered Free Cash Flow in a DCF analysis?
A.Levered FCF includes the effects of cash and debt, while Unlevered FCF excludes the effects of financing decisions.
B.Unlike Levered FCF, Unlevered FCF is pre-tax because the formula begins with Operating Income (or EBIT).
C.Unlike Unlevered FCF, with Levered FCF you do not add back Depreciation or other non-cash charges because the formula starts with Net Income.
D.In a DCF, using Levered FCF results in Enterprise Value while using Unlevered FCF for the calculations results in Equity Value
Option A :- Levered FCF includes the effects of... View the full answer