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    PV, FTE and WACC Comparison

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    Compare and contrast the APV, FTE and WACC approaches to valuation.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:42 pm ad1c9bdddf
    https://brainmass.com/business/adjusted-present-value/pv-fte-and-wacc-comparison-159904

    Solution Preview

    Three methods are proposed for valuation of levered firms:
    - The APV (adjusted present value) approach,
    - The WACC (weighted average cost of capital) approach and
    - The FTE (flow to equity) method.

    Studies [1] show that WACC and APV are two completely ...

    $2.19