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Subject:  Re: Free Cash Flow Payout Ratio?? Date:  11/26/2008  1:06 AM
Author:  FoolishFemale Number:  898 of 922

Thanks for the reply - I finally decided to write to the author of the article and he replied with this - in case you are interested!

The equation for the FCF payout ratio is:

Total Dividends Paid / Levered Free Cash Flow

Levered Free Cash Flow, or Free Cash Flow to Equity = Net Income – Cap Ex + Depreciation – Change in net working capital – debt repaid + debt issued.
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