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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › jupiter co (12/08)(a)
Why FCFE method is not used to calculate the mv of equity?but market capitalisation method is used?thanks in advance
But for part (a), you are told the market value of the equity in the question – it is 1,380 c per share.
In addition you cannot use the FCFE to calculate it yourself anyway, because you do not know what the current dividend growth rate it (you only know what it will be in the future).
dear jhon u r best
Thank you for your comment 🙂