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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Selorne Co ( Sep 2018)
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
I guess when the Free cash flows are discounted with growth incorporated then we get Market Value of Equity
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.
Thanks Sir its clear now
You are welcome 🙂