Question 1 December 2014 part 1

Dear John, asked the question under your video lecture, but probably better here:

In the answer and your lecture, free cash flow to equity and its discount on the cost of equity is used to value “Fugae” and “Avem”. For “Avem” market price of shares multiple by number of shares is calculated to get the value of the company before the deal.
But isn’t the result of the above calculations only the Equity value and we have to add the cost of debt to come to the company value?

The question might be silly and answer obvious, but your comment would be of very great help. Thank you for your time!
If somebody form the readers could explain would be also very grateful.