Question
If the WACC of a company is less than the Terminal Growth Rate how do you calculate Present Terminal Value of FFCF (Free Firm Cash
If the WACC of a company is less than the Terminal Growth Rate how do you calculate Present Terminal Value of FFCF (Free Firm Cash Flow) for a Discounted Cash Flow Model? I currently have a WACC of 1.27% and a Terminal Growth Percentage of 2%. When using the calculation my Present Value Terminal for FFCF is a negative, however this is not practical. What do I do?
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Advanced Modelling In Mathematical Finance
Authors: Jan Kallsen, Antonis Papapantoleon
1st Edition
3319458736, 978-3319458731
