Question
Computing Present Value of Terminal Period FCFF Use the following data to compute the present value of the terminal period free cash flows to the
Computing Present Value of Terminal Period FCFF
Use the following data to compute the present value of the terminal period free cash flows to the firm for each of the four firms A, B, C, and D. The forecast horizon included four years.
| A | B | C | D | |||||
|---|---|---|---|---|---|---|---|---|
| Terminal period free cash flow to the firm (FCFF) | $57,115 | $1,258 | $85,962 | $29,117 | ||||
| WACC | 5.0% | 6.2% | 4.3% | 11.0% | ||||
| Terminal period growth rate | 1.0% | 1.0% | 2.0% | 1.5% |
Round answers to the nearest whole number.
| A | B | C | D | |||||
|---|---|---|---|---|---|---|---|---|
| Present value of terminal cash flows | Answer | Answer | Answer | Answer |
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
7th Edition
0136103227, 9780136103226
