Question
Company A hires you as an expert to solve the following problem. You have to analyze 2 firms which are in the same industry, of
Company A hires you as an expert to solve the following problem. You have to analyze 2 firms which are in the same industry, of similar size, but firm A has higher capital expenditure than Company B. Should You use EBIT or EBITDA in your analysis? How about Levered FCFs vs Unlevered FCFs? Why? Should you calculate the equity value or the enterprise value? Why?
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
