Equity shares equating the results of FCFF and FCFE methods

The aim of the article is to present the method of establishing equity shares in weight average cost of capital (WACC), in which the value of loan capital results from the fixed assumptions accepted in the financial plan (for example a schedule of loan repayment) and own equity is evaluated by means of a discount method. The described method causes that, regardless of whether cash flows are calculated as FCFF or FCFE, the result of the company valuation will be identical.

MoreLess

Year of publication:	2012
Authors:	Cegłowski, Bartlomiej ; Podgórski, Blażej
Published in:	e-Finanse: Financial Internet Quarterly. - Rzeszów : University of Information Technology and Management, ISSN 1734-039X. - Vol. 8.2012, 2, p. 34-43
Publisher:	Rzeszów : University of Information Technology and Management
Subject:	weight average cost of capital \| discount rate \| free cash flow \| company valuation \| assessment of investment profitability

freely available

Full text |

More access options

Check Google Scholar

In libraries world-wide (WorldCat)

In German libraries (KVK)

subito order

I need help

More details

Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	721440762 [GVK] hdl:10419/66773 [Handle]
Classification:	G31 - Capital Budgeting; Investment Policy ; G32 - Financing Policy; Capital and Ownership Structure ; G39 - Corporate Finance and Governance. Other
Source:	EconStor

Persistent link: https://www.econbiz.de/10010289552