Hey guys,
can anyone please help to understand on what basis the one can say that the growth rate in FCFF can be different from the growth rate in FCFE ?
Depends on the capital structure.
I don’t think that the perpetual growth rate of FCFE can be any different than the growth rate of FCFF. However, in the short-term growth rates may vary depending on changes in capital structure.
Got it ! Thank you guys 