Integration of Free Cash Flow (FCF) with Cash Flow Based Corporate Finance (CFCF) Model
DOI:
https://doi.org/10.47672/ajf.2944Keywords:
Free Cash Flow (FCF), Free Cash Flow Based Corporate Finance (CFCF) Model, FCF Calculation Methods, Yilmaz (2024b)’S FCF Calculation MethodAbstract
Purpose: To contribute the five functions- capital budgeting, merger& acquisition, valuation, capital structure and dividend policy- of cash flow based corporate (CFCF) model.
Methodology: Integration of free cash flow (FCF) with capital budgeting, merger& acquisition, and valuation is fulfilled through free cash flow (FCF) discounting. Integration of free cash flow (FCF) with capital structure and dividend policy is fulfilled through free cash flow (FCF) distribution depending on FCF availability to pay dividend or/and stock buyback and again capital structure adjustments depending on FCF availability.
Findings: This is not an empirical study so there is no any finding.
Unique Contribution to theory, Practice and Policy There is an assumption before these integration operations. This is the acceptance of Yilmaz (2024)’s free cash flow (FCF) calculation method as a precondition for all integration operations of the five functions. This assumption should be applied before the operations.
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Copyright (c) 2026 Prof. Dr Huseyin Yilmaz
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