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Company value as EBIT(1-t)/r?
Just encountered that on my Wiley mock. Twice actually.
Have you seen it anywhere else? I gues you could say that EBIT after taxes is sort of an approximation of FCFF...but to use in an actual valuation and imply cost of equity from using it seems too far fetched to me.
Am I wrong?
Btw.: It's frustrating, but Wiley also isn't free of mistakes and errors. The most irritating and literally "gamebreaking" one for me is that binomial IR trees don't show in the vignette.