Different ways of valuing equity?

CFA Level II Equities
#1

Hi experience charter holders and candidates,

What is the difference between -

Discounting the FCFF using WACC and subtract out the total value of debt to arrive at the value of equity.

or,

Using FCFF and take out Interest*(1-tax)+Net burrowing and discounting the FCFE by the cost of equity?

Both seem to be valid methods of vauling equity, and I’ve gotten questions on both. What is the difference here?

Thanks!

#2

No difference. If your assumptions are identical the value of your equity will be the same whether you start with FCFF (discounted at the WACC) and deducting debt or FCFE at the cost of equity.