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Title: Which of the following statements is FALSE?
Post by: EpiscoWhat on Nov 21, 2017
Which of the following statements is FALSE?
A) In the flow-to-equity valuation method, the cash flows to equity holders are then discounted using the weighted average cost of capital.
B) In the WACC and APV methods, we value a project based on its free cash flow, which is computed ignoring interest and debt payments.
C) In the flow-to-equity (FTE) valuation method, we explicitly calculate the free cash flow available to equity holders taking into account all payments to and from debt holders.
D) The first step in the FTE method is to determine the project's free cash flow to equity (FCFE).


Title: Re: Which of the following statements is FALSE?
Post by: EgorGruzdev on Nov 21, 2017
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