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Assume a firm's revenues and net income are projected to grow by 10% per year into the foreseeable future. What terminal value growth rate is
Assume a firm's revenues and net income are projected to grow by 10% per year into the foreseeable future. What terminal value growth rate is most appropriate for the free cash flow valuation model when WACC is 11%? -40% -10% 0% 5% 15% The present value (today) of the terminal (continuation) value cash flow that begins in 11 years is $28,174,758 assuming a WACC equal to 11%. The year 11 free cash flow (beginning of the growing perpetuity) is $4,000,000. What is the growth rate required for the continuation value term? 5% 6% 7% 8% 9% Show all calculations please
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