FCFF和FCFE对equity的估值

问题如下：

An analyst Smith recommend using a FCFF model to value Company A’s common stock instead of using a FCFE model because Company A has had a history of leverage changes in the past.

Smith’s recommendation to use a FCFF model to value Company A is:

选项：

A.

logical, given the prospect of Company A changing capital structure

B.

not logical because a FCFF model is used only to value the total firm

C.

not logical because FCFE represents a more direct approach to free cash flow valuation

解释：

The FCFF model is often selected when the capital structure is expected to change because FCFF estimation may be easier than FCFE estimation in the presence of changing financial leverage.