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) | $68,230 | $12,373 | $97,077 | $40,232 | ||||
| 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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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
4th Edition
0136026028, 9780136026020
