Briefly speaking

Advantages:

(1)FCF is able to appraise the performance or outstanding achievement of a corporation more reasonable.

(2)Putting the FCF into use enables the firm to focus on “Value Motivation Portfolio” better.

Disadvantages or Limitations:

The Diversification of the corporation's future adds more uncertainty to the prediction of FCF,which also hurt the reliability of the financial appraisal.

[此贴子已经被作者于2007-5-22 0:51:39编辑过]