Work out free cash flow to firm instantly with clear inputs, formula shown and shareable results.
FCFF is the cash available to all capital providers before financing flows. Start from EBIT, tax it at the effective rate to get NOPAT, add back non-cash depreciation and amortisation, then deduct the capital expenditure and working capital increase needed to sustain the business.
FCFF
FCFF = EBIT x (1 - Tax rate) + D&A - Capex - Increase in working capital
Reinvestment rate
Reinvestment rate % = Reinvestment / NOPAT x 100
Because it reduced EBIT but no cash left the business. Actual cash spent on assets enters separately as capex.
Because it is independent of leverage, so a change in capital structure does not change the enterprise value you compute.