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OpenStudy (anonymous):

Hi Folks, a quick help here: Which Free Cash Flow should I use to calculate the FCF Yield: FCF to Equity or FCF to the Firm?

OpenStudy (anonymous):

And what's the rationale for that?

OpenStudy (anonymous):

If you are dividing by the market value of equity, it should be FCFE. If you are dividing by enterprise value, it should be FCFF. Consistency is the rationale.

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