A Key Difference Between the APV, WACC, and FTE Approaches

question 10

Multiple Choice

A key difference between the APV, WACC, and FTE approaches to valuation is:

• A)how the unlevered cash flows are calculated.
• B)how the ratio of equity to debt is determined.
• C)how the initial investment is treated.
• D)whether terminal values are included or not.
• E)how debt effects are considered;