- Capital Budgeting
- Adjusted Present Value (APV) Approach
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  show that WACC and APV are two completely ...