Find and estimate the value of equity

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Plroblem 1: There are two approaches to estimating the value of equity using the free cash flow method - one is to first estimate free cash flow to capital for the firm, forecast enterprise value and then subtract the value of net debt. The other approach is to directly forecast the free cash flow to equity and using those forecasts to estimate the value of equity. Compare these approaches and discuss which approach requires fewer assumptions.

Reference no: EM132717914

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