Question
ABC Company's after-tax cash flow is $10 million (at the end of) this year and is expected to grow at 5% per year forever. The
ABC Company's after-tax cash flow is $10 million (at the end of) this year and is expected to grow at 5% per year forever. The appropriate discount rate is 9%. What is the value of company ABC? ( Note : Your answer must be in units of millions of dollars.)
Step by Step Solution
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Step: 1
To calculate the value of company ABC we can use the perpetuity formula which is co...
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
