Final answer:
FCFE is calculated from FCFF by subtracting the after-tax interest expense and adding net borrowing, reflecting cash flow available to equity holders after payments to debt holders.
Step-by-step explanation:
The formula to calculate Free Cash Flow to Equity (FCFE) from Free Cash Flow to the Firm (FCFF) is not explicitly provided in the information. However, to transition from FCFF to FCFE, generally, you would consider net borrowing and subtract the after-tax interest expense, since FCFF is the cash flow available to all providers of capital (both debt and equity holders) and FCFE is the cash flow available to equity holders only.
For instance, the starting point could be:
FCFE = FCFF - Interest*(1-Tax Rate) + Net Borrowing
Where FCFF represents the free cash flow to the firm, Interest represents the interest paid on debt, Tax Rate is the corporate tax rate, and Net Borrowing is the difference between new debt issued and debt repaid during the period.