Question
In the valuation of PDQ Corporation, the terminal value (TV at time T) of the company is calculated as 15 times year T cash flow.
In the valuation of PDQ Corporation, the terminal value (TV at time T) of the company is calculated as 15 times year T cash flow. If the WACC of PDQ is 10%; what is the implied constant growth of FCFF after year T? (Answer rounded to the nearest 0.01%)
- A. 4.00%
- B. 3.00%
- C. 3.57%
- D. 3.13%
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
