Why, when applying the FCF valuation model, do you add in the value of non-operating assets and

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Why, when applying the FCF valuation model, do you add in the value of non-operating assets and subtract the value of all debt and preferred stock when calculating the intrinsic value of equity?

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Intermediate Financial Management

ISBN: 9780357516669

14th Edition

Authors: Eugene F Brigham, Phillip R Daves

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Question Posted: Feb 24, 2023 08:03 AM

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Why, when applying the FCF valuation model, do you add in the value of non-operating assets and

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The reason debt and preferred stock are subtracted from the intrinsic ...View the full answer

Intermediate Financial Management

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