Hey guys, I have a question regarding FCF. I am doing a little study on my own but I cannot get my head around part of the FCF calculation. On the tech interview guide, it says that FCF is equal to EBIT (earnings before interest and taxes) multiplied by (1-the tax rate) plus (depreciation and amortization) minus capital expenditures minus the change in net working capital. However, interest payment is tax deductible, should not we add back the tax shield here?
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