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Free cash flow to the firm is also known as unlevered free cash flow, and it represents the cash flow available to all investors in the business. The formula for calculating it starts with EBIT, which is the lowest point on the income statement before interest is deducted. Next, EBIT is multiplied by 1 minus the tax rate to calculate a hypothetical tax bill if the company had no debt. This new tax bill is deducted from EBIT to get the net operating profit after taxes (NOPAT). NOPAT is then adjusted for non-cash expenses like depreciation and amortization.