In the flow-to-equity (FTE)valuation method,we explicitly calculate the free cash flow available to ________ taking into account all payments to and from ________.

Question

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In the flow-to-equity valuation method, we calculate the free cash flow available to equity holders, which means that the correct answer is either B or D. However, FTE takes into account all payments to and from debt holders, which means that only D (equity holders and debt holders) is the correct answer.

In the Flow-To-Equity (FTE)valuation Method,we Explicitly Calculate the Free Cash