(a) Discuss the following valuation techniques. For each technique, identify the key assumptions and firm specific characteristics that must be taken into consideration

(i) Free Cash Flow to Equity (FCE)

(ii) Free Cash Flow to the Firm (FCF)

(iii) Dividend Discount Models (DDM)

(b) Assume that you have been tasked with the assignment of estimating the equity value of ABC limited using either DDM or FCE. Advance two plausible factors that might dictate the adoption of the FCE over DDM

(c) In valuing the company in part (b), discuss the extent to which the firms financial structure might influence the choice between FCE and FCF