Vendor Image

An Introduction to Equity Residual Cash ...

Schill, Michael J.

Technical Note

An Introduction to Equity Residual Cash Flow

Schill, Michael J.

F-2070 | Published May 1, 2024 | 9 pages Technical Note

Collection: Darden School of Business

Product Details

This technical note introduces the concept of equity cash flow or equity residual cash flow. The note provides an explicit comparison between free cash flow and equity residual cash flow in the context of an acquisition of a fictional veterinary practice. At the Darden School of Business, this note is used in the elective course “Valuation in Financial Markets” and as an introduction to valuation based on equity cash flow.

0