Uses of FCFF and FCFE???

CFA Level II Equities
#1

I just finished a complete review of FCFF and FCFE and I believe I’m starting to completely get a handle on all the formulas and methodologies…

HOWEVER - I just don’t get get/understand the point that is trying to be made with Uses of FCFF and FCFE. All I “understand” from this section is USES = SOURCES (must).

Can someone please explain as simplistically as possible smiley

#2

Anyone have any insight on this?? Thanks in advance!!!

#3

So if you want to value your equity ownership use FCFE

If you want to value an entire firm - enterprise value-esque, debt and equity of the business - use the FCFF