问题如下:
Based on Company A’s key characteristics, which discounted cash flow model would most likely be used by the investment team to value Company A’s shares?
选项:
FCFE
C.FCFF
解释:
B is correct. Company A has a history of paying modest dividends relative to FCFE. An FCFF or FCFE model provides a better estimate of value over a DDM model when dividends paid differ significantly from the company’s capacity to pay dividends. Also, Company A has a controlling investor; with control comes discretion over the uses of free cash flow. Therefore, there is the possibility that the controlling shareholder could change the dividend policy. Finally, Company A has a stable capital structure; using FCFE is a more direct and simpler method to value a company’s equity than using FCFF when a company’s capital structure is stable.
因为stable capture 而选择FCFF而不是FCFE?如不是stable capture ,就用FCFF?
以及新的shareholder 会改变divide policy,涉及leverage ,用FCFE而不是FCFF?