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Selorne Co ( Sep 2018)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Selorne Co ( Sep 2018)

  • This topic has 4 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • May 27, 2019 at 11:21 am #517527
    jawadurrahman
    Member
    • Topics: 23
    • Replies: 28
    • ☆☆

    Sir, what is the difference between the current value of Equity and Free cash flow to equity? aren’t they the same thing? in the model answer, they have provided it

    May 27, 2019 at 11:26 am #517528
    jawadurrahman
    Member
    • Topics: 23
    • Replies: 28
    • ☆☆

    I guess when the Free cash flows are discounted with growth incorporated then we get Market Value of Equity

    May 27, 2019 at 12:38 pm #517536
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    The market value of equity is the present value of the free cash flows to equity discounted at the cost of equity.

    This is explained in my free lectures.

    May 27, 2019 at 4:47 pm #517562
    jawadurrahman
    Member
    • Topics: 23
    • Replies: 28
    • ☆☆

    Thanks Sir its clear now

    May 28, 2019 at 7:41 am #517612
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • The topic ‘Selorne Co ( Sep 2018)’ is closed to new replies.

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