Define discounting the equity cash flow, Financial Management

Assignment Help:

Which of these two methods is better: discounting the Equity Cash Flow or discounting the Free Cash Flow?

The results we get by discounting the Equity Cash Flow and the Free Cash Flow are identical (or else, one or both of the valuations are incorrect).  Personally, discounting Equity Cash Flows is better than discounting the Free Cash Flow (I find the flow and the discount rate more intuitive). I also like to balance this valuation with the APV

 


Related Discussions:- Define discounting the equity cash flow

Define banks like to make short-term, Banks like to make short-term, self-l...

Banks like to make short-term, self-liquidating loans to businesses.  Why? Banks like to be capable to see where the funds are similarly to come from like the borrower is able to

What is institutional finance, What is Institutional Finance A natio...

What is Institutional Finance A nation's economic structure comprise a number offinancial institutions, like banks, pension funds, insurance companies, creditunions. These i

Yield volatility and measurement, Measuring volatility is very impo...

Measuring volatility is very important as it is a critical input in valuation models. In subsequent chapters we will see the importance of assumed volatilit

Working of securities and exchange commission, Working of SEC The SEC s...

Working of SEC The SEC supervises the main members in the securities world, including securities brokers and dealers, securities exchanges, investment advisors, and mutual fund

Explain the adjusting journal entry, Q. Explain the Adjusting Journal Entry...

Q. Explain the Adjusting Journal Entry? Adjusting Journal Entry - An accounting entry made into a subsidiary ledger known as the Generaljournal to account for a periods changes

What was the value of each person investment, Joe and Sam each invested $20...

Joe and Sam each invested $20,000 in the stock market. Joe's investment increased in value by 5% per year for 10 years. Sam's investment decreased in value by 5% for 5 years and th

Use of beta to partition risk, Use of Beta to Partition Risk The total ...

Use of Beta to Partition Risk The total risk or variability in earnings can be attributed to two classes of factors: Marketwide factors which create variability in all

Common-size balance sheet and income statement, The question to be answere...

The question to be answered is : "Since the 1990 opening of stock exchanges, China started to use financial statements to determine the performance of listed companies. What were c

Define the term- future cost and historical cost, Define the term- Future C...

Define the term- Future Cost and Historical Cost Future cost of capital refers to expected cost of funds to be raised to finance a project. In contrast, historical cost signifi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd