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    PV, FTE and WACC Comparison

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

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    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 ...