Question
Ellis Manufacturing Inc. has estimated FCFF for each of the next five years and believes that subsequent cash flows will grow at a constant annual
Ellis Manufacturing Inc. has estimated FCFF for each of the next five years and believes that subsequent cash flows will grow at a constant annual rate of 3% indefinitely. If FCFF are $4,500,000 in year five, and the cost of capital is 9%, what is the value in year five of these terminal value cash flows?
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Auditing A Risk Based-Approach
Authors: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
11th Edition
1337619455, 1337619450, 9781337670203 , 978-1337619455
