Why is the rate used to discount FCFF different from the rate used to discount FCFE?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:30 AM

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Why is the rate used to discount FCFF different from the rate used to discount FCFE?

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The discount rates are different because the riskiness ...View the full answer

Fundamentals of corporate finance

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