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We consider a finite-state machine channel with a finite memory length (e.g., finite length intersymbol interference channels with finite input alphabets-also known as partial response channels). For such a finite-state machine channel, we show that feedback-dependent Markov sources achieve the feedback capacity, and that the required memory length of the Markov process matches the memory length of the channel. Further, we show that the whole history of feedback is summarized by the causal posterior channel state distribution, which is computed by the sum-product forward recursion of the Bahl-Cocke-Jelinek-Raviv (BCJR) (Baum-Welch, discrete-time Wonham filtering) algorithm. These results drastically reduce the space over which the optimal feedback-dependent source distribution needs to be sought. Further, the feedback capacity computation may then be formulated as an average-reward-per-stage stochastic control problem, which is solved by dynamic programming. With the knowledge of the capacity-achieving source distribution, the value of the capacity is easily estimated using Markov chain Monte Carlo methods. When the feedback is delayed, we show that the feedback capacity can be computed by similar procedures. We also show that the delayed feedback capacity is a tight upper bound on the feedforward capacity by comparing it to tight existing lower bounds. We demonstrate the applicability of the method by computing the feedback capacity of partial response channels and the feedback capacity of run-length-limited (RLL) sequences over binary symmetric channels (BSCs).