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Dear Sir,
1. Why in calculating the MVe of the Company using FCFE , re was used instead of WACC?
Thanks
I did write in one of my previous answers to you, that if we are using the free cash flow to equity then we always discount at the cost of equity to get the market value of equity.
If, on the other hand, we are looking at the free cash flows (which are before interest payments) then we discount at the WACC to get the market value of the company as a whole.
Have you read Chapter 16 of the free lecture notes?
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