(a) Compare 'free cash flow to the firm' and 'free cash flow to equity' as inputs...

 

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(a) Compare 'free cash flow to the firm' and 'free cash flow to equity' as inputs to discounted cash flow models. In your answer, you should (i) (ii) (iii) describe each model (including its inputs); explain how you would make a valuation decision using each model; compare and contrast the models. (30 marks) (a) Compare 'free cash flow to the firm' and 'free cash flow to equity' as inputs to discounted cash flow models. In your answer, you should (i) (ii) (iii) describe each model (including its inputs); explain how you would make a valuation decision using each model; compare and contrast the models. (30 marks)

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Free cash flow to the firm FCFF and free cash flow to equity FCFE are both important inputs to discounted cash flow DCF models used in valuation Below ... View the full answer