DCF- Free Cash Flow to Firm/Equity HELP
Hi guys , just want to make sure a few facts straight here,
1, FCFF(Free Cash Flow to Firm) also called Unlevered FCF, FCFE(free cash flow to Equity) also called Levered FCF?
2, FCFF discounted by WACC ( cost of equity is calculated using unlevered Beta)=Enterprise Value
FCFE discounted by Cost of Equity (calculated using levered beta)=equity value
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!