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PV, FTE and WACC Comparison

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

© BrainMass Inc. brainmass.com August 18, 2018, 7:34 pm ad1c9bdddf

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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 ...

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