Select all that are true with respect to the flow to equity (FTE) approach:   Group of answer choices Equity represents the senior claimants; thus, they have priority rights over all the other capital providers to the firm. Estimate free cash flow to equity as the after-tax operating cash flow less interest payments to debt holders. Estimate free cash flow to equity as the after-tax operating cash flow less after-tax interest payments and principal payments to debt holders.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Select all that are true with respect to the flow to equity (FTE) approach:
 
Group of answer choices
Equity represents the senior claimants; thus, they have priority rights over all the other capital providers to the firm.
Estimate free cash flow to equity as the after-tax operating cash flow less interest payments to debt holders.
Estimate free cash flow to equity as the after-tax operating cash flow less after-tax interest payments and principal payments to debt holders.
The value of the entire firm is the value of the equity plus the value of the debt (assume excess cash is zero).
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