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A firm with 14 branches has the following estimated income projections, (year 1) 135,000 KWD, (year 2) 142,000 KWD, (year 3) 144,000 KWD. If the
A firm with 14 branches has the following estimated income projections, (year 1) 135,000 KWD, (year 2) 142,000 KWD, (year 3) 144,000 KWD. If the growth rate is expected to be 14%, and the discount rate is 22%.
a) calculate the terminal value at end of year 3
b) the present value of the firm today.
c) if an investor wants to pay 70,000 KWD to buy a share in the company, how much will he or she own as % of the company.
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