To calculate FCFF or FCFE We do ignore non-operating assets such as excess cash, excess marketable securities, or land held for investment When calculating firm value using the FCFF or FCFE model, we do do ADD non-operating assets such as excess cash, excess marketable securities, or land held for investment. Is this correct?
deep2002 Wrote: ------------------------------------------------------- > To calculate FCFF or FCFE > > We do ignore non-operating assets such as excess > cash, excess marketable securities, or land held > for investment > Right. > When calculating firm value using the FCFF or FCFE > model, we do do ADD non-operating assets such as > excess cash, excess marketable securities, or land > held for investment. Right. FCFF will tell you the value of operating assets. So if you need the value of the entire firm then you have to add the non-operating assets that you listed. > > Is this correct?
Awesome, thanks mwvt9. See, you know your stuff 