What I underdtand about these patterns is that: FCFE is basically a measuri.g tool to evaluate the availability of total cash flow to be allocated to Equity Sbareholders of the Organization at the end of Financial exercise. Means at the bottom lines of a Financial Statement (Profit or Loss) the measure of Equity Capital Usage(ECU) within the Company; while FCFF is measured on the platform of the total cash flow value of the entire Organization and this includes both bondholders as well as shareholders(Company's Investors). Means
FCFF basically on the total value of the entire Company and at the other hand
FCFE on the total value of the Company's Equity...Noticed that borh can be diacounted at the right value as to avoid any diacrepancy or wrong allocation. Thanks
