A firm has a required rate of return of 7.75%. It has high growth rate of 6% in its 5 years of planning period. During the planning period the firm retains 60% of its earning, but after that it only retains 30% of its earning. What growth rate this this firm need in the years after the planning period in order for the P/E ratio to be equal to 15?

We are now in year 2018. Suppose a firm has the following future Free Cash Flow during its 5 years planning period. The firms WACC is 10.2% and the terminal growth rate is 2.2%. Suppose the EBITDA in 2023 is $1,250,000 and the EBITDA multiple is 7.

What is the enterprise value using the APV method (DCF method for terminal value)?

What is the enterprise value using the Hybrid APV method (EBITDA multiple for terminal value)?

Question

A firm has a required rate of return of 7.75%. It has high growth rate of 6% in its 5 years of planning period. During the planning period the firm retains 60% of its earning, but after that it only retains 30% of its earning. What growth rate this this firm need in the years after the planning period in order for the P/E ratio to be equal to 15?

We are now in year 2018. Suppose a firm has the following future Free Cash Flow during its 5 years planning period. The firms WACC is 10.2% and the terminal growth rate is 2.2%. Suppose the EBITDA in 2023 is $1,250,000 and the EBITDA multiple is 7.

What is the enterprise value using the APV method (DCF method for terminal value)?

What is the enterprise value using the Hybrid APV method (EBITDA multiple for terminal value)?

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A firm has a required rate of return of 7.75%. It has high growth rate of 6% in its 5 years of planning period. During

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