Hi guys , just want to make sure a few facts straight here,
1, FCFF(Free Cash Flow to Firm) also called Unlevered
2, FCFF discounted by ( cost of equity is calculated using unlevered Beta)=Enterprise Value
FCFE discounted by Cost of Equity (calculated using )=
So, Enterprise Value- Mrkt value of Debt=Equity Value. this relationship should hold theoretically , Correct?
In what circumstances they do not hold?what am i missing if any?
Thanks very much in advance!