Explain how the corporate valuation model and the adjusted present value (APV) method are used to estimate

Question:

Explain how the corporate valuation model and the adjusted present value (APV) method are used to estimate the value of a target company. If someone did a complete and careful analysis of a given target using both of these method, would they produce the same results? Explain why, under certain growth and conditions, it is better to use the APV method.

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...