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Free cash flow to the firm (FCFF) is the cash available to pay investors after a company pays its costs of doing business, invests in short-term assets like inventory, and invests in long-term assets like property, plants and equipment.The firm's investors include both bondholders and stockholders.The free cash flow to equity formula is used to calculate the equity available to shareholders after accounting for the expenses to continue operations and future capital needs for growth.
