{
  "docId": "019de06f-28cb-7211-8997-56898cf5fd3f",
  "docSlug": "bfc2c26a8c29fb23775a386134299cd0",
  "documentTitle": "Bear Stearns | Investment Banking Pitch Book | 36 slides",
  "authorId": "bear-stearns",
  "authorName": "Bear Stearns",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "investment_bank",
  "sourceTypeLabel": "Investment bank",
  "presentationDate": "2005-01-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.294673,
  "pageNumber": 8,
  "pageCount": 36,
  "prevPage": 7,
  "nextPage": 9,
  "slideType": "appendix_methodology",
  "function": "present_framework",
  "density": "balanced",
  "nDataPoints": 0,
  "notes": "This slide outlines the standard financial modeling steps for deriving FCFF and FCFCE from EBIT.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/8",
  "deckHref": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f",
  "deckJsonHref": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json",
  "deckAnchorHref": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-8",
  "components": [
    {
      "bbox": {
        "h": 0.6,
        "w": 0.86,
        "x": 0.07,
        "y": 0.26
      },
      "kind": "table",
      "text": "Earnings before interest and taxes (EBIT) | Consolidated operating income related to the subject operations. Subtract adjusted taxes | Calculated by multiplying the marginal tax rate by EBIT... Add depreciation and amortization | Includes all depreciation and amortization subtracted from EBITDA to arrive at EBIT. Subtract (add) increases (decrease) in working capital | Includes changes in accounts receivable, inventory... Subtract capital expenditures | Going forward, should include one-time, non-recurring cash flows... Equals free cash flows to the unlevered firm (FCFF) | Cash flows are available to both debt and equity holders. Subtract cash interest paid | May differ from interest expense due to non-cash interest charges. Add interest tax shield | Calculated by multiplying marginal tax rate by interest expense. Add (subtract) increases (decreases) in debt, preferred stock and minority interest | Increases in non-common equity sources of capital... Subtract preferred dividends | Any cash payments to non-common equity claimholders... Equals free cash flows to the common equity (FCFCE) | Cash flows are available only to common equity holders.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d2e9ef46-36a4-4617-ad9e-ef37771a7178",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.5,
        "x": 0.09,
        "y": 0.18
      },
      "kind": "title",
      "text": "Defining Free Cash Flow—Top-Down Approach",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ed4e3155-2eee-426b-a7e2-a3a3266a0621",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Table data",
      "slug": "table-data",
      "agent": null,
      "layer": "slide",
      "matchId": "d1d98483-b3c2-4558-83e2-25b2325fe8dc",
      "evidence": "table/data: Earnings before interest and taxes (EBIT) | Consolidated operating income related to the subject operations.",
      "confidence": 0.9
    }
  ],
  "frameworks": [
    {
      "name": "Discounted Cash Flow Methodology",
      "slug": null,
      "matchId": "0b2b89f8-eefd-4fcd-83db-e2093274d217",
      "evidence": "The slide explicitly details the top-down approach for calculating FCFF and FCFCE.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 10,
      "from": 5,
      "beatId": "626e9de9-7e23-4de5-acf7-93e6d74402f2",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Problem & Complication",
      "beatSlug": "consultants-gambit-problem-complication",
      "evidence": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}