Managing Corporate Value

n the context of recent research on the Weighted Average Cost of Capital (WACC),

the Adjusted Present Value (APV) and the Flow-to-Equity (FTE), which of these

methods would you use for the following companies (explain your choice).

a) A firm with uncertain growth rates for the next 10 years.

b) A start-up firm with no debt.

c) A start-up firm with debt.

d) A financially distressed firm that has excess levels of debt but significant

accumulated tax credits.