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wdb
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Posts: 1
Joined: September 18th, 2004, 3:59 pm

Apv , FTE, wacc

October 16th, 2004, 5:13 pm

Hello,I am facing a dilemma. I was reading an example about capital budgeting using different approaches (APV,FTE,and WACC) in Ross , westerfield and Jaffe's book (Corporate finance).Surprisingly each method yielded a totally different answer ? is this possible. Aren't they supposed to give the same answer. Attached, the first 9 slides were the example was given and the results are different?I hope you could help
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Last edited by wdb on October 15th, 2004, 10:00 pm, edited 1 time in total.
 
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LondonPete
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Joined: October 28th, 2003, 8:51 pm

Apv , FTE, wacc

October 16th, 2004, 10:55 pm

Dude, is the market capitalization of a firm the same as its book value?