Question
ABC Company wants to value its company based on 5 years of forecast Free Cash Flows, including a Terminal Value (using the Perpetuity Growth Model)
ABC Company wants to value its company based on 5 years of forecast Free Cash Flows, including a Terminal Value (using the Perpetuity Growth Model) in Year 5.Given the following information, calculate the Terminal Value in Year 5 (Do not include $ in the answer - for example $123,456 would be entered as 123456).
Year 5 Free Cash Flows without Terminal Value$1,583,245
Projected Growth Rate 2.0%
WACC (Discount Rate) 10.5%
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Answer Therefore the Terminal Value in Year 5 is approximately 1899423106 To calculate the ...Get Instant Access to Expert-Tailored Solutions
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Statistical Techniques In Business And Economics
Authors: Douglas Lind, William Marchal
16th Edition
78020522, 978-0078020520
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