Question
If ABCcompany's cash flows are expected to grow at a rate of 15% for the next eight years before tapering off to a constant growth
If ABCcompany's cash flows are expected to grow at a rate of 15% for the next eight years before tapering off to a constant growth rate of 6% forever. The current year's cash flow is $50,000. If the firm's cost of capital is 20%, what should its fair market value be?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
