FCFF v/s FCFE

[Sanjay Sachdev]

Hey guys,
can anyone please help to understand on what basis the one can say that the growth rate in FCFF can be different from the growth rate in FCFE ?

 

[MrSmart]

Depends on the capital structure.

 

[CMLSML]

I don’t think that the perpetual growth rate of FCFE can be any different than the growth rate of FCFF. However, in the short-term growth rates may vary depending on changes in capital structure.

 

[Sanjay Sachdev]

Got it ! Thank you guys