DDM/FCFF/FCFE firm valuation

CFA Level II Equities
#1

Use DDM- Minority perspective

FCFF- cap structure instable, control perspective

FCFE?

#2

My understanding is that you would use if for a minority position in a firm that does not pay a dividend.

You could use a number of other methods too, but if you want to use CF and you don’t have an influence on how to spend FCFF, you would use FCFE.

#3

Incorrect. Both take control perspective. FCFF values entire firm. FCFE values equity directly.