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Analysts normally must calculate a terminal value of a firm when preparing a discounted cash flow valuation. There are three ways to prepare this estimate,
Analysts normally must calculate a terminal value of a firm when preparing a discounted cash flow valuation. There are three ways to prepare this estimate, which include assuming a liquidation value of the firm's assets in the terminal year, applying a multiple to earnings, revenues or book value, and assuming the free cash flows will grow at a constant rate forever a stable growth rate Using each of these methods, what is your estimate of the terminal value for the company that you elected to study? Home Depot HD
Analysts normally must calculate a terminal value of a firm when preparing a discounted cash flow valuation. There are three ways to prepare this estimate, which include assuming a liquidation value of the firm's assets in the terminal year, applying a multiple to earnings, revenues or book value, and assuming the free cash flows will grow at a constant rate forever a stable growth rate Using each of these methods, what is your estimate of the terminal value for the company that you elected to study? Home Depot HD
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