DDM/FCFF/FCFE firm valuation

[crackthecfa]

Use DDM- Minority perspective
FCFF- cap structure instable, control perspective
FCFE?

 

[mistablair]

My understanding is that you would use if for a minority position in a firm that does not pay a dividend.
You could use a number of other methods too, but if you want to use CF and you don’t have an influence on how to spend FCFF, you would use FCFE.

 

[Jmachine4]

Incorrect. Both take control perspective. FCFF values entire firm. FCFE values equity directly.