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Can you assist me with my homework? I wanted to know if my calculations are right. Using the following set of parameters: Gross Margin 40%
Can you assist me with my homework? I wanted to know if my calculations are right.
Using the following set of parameters:
Gross Margin 40%
Fixed Costs $2,000
Revenue Growth Rate for Years 1 to 5 10%
FCF Steady Growth 3%
Discount Rate 12%
Year 1 Revenue $5,000
Tax Rate 35%
Terminal Year 5
please answer the following questions
- what percentage the terminal value contributes to the total enterprise value?
- How sensitive is your valuation to inputs?
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