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Need the formula Growth Rate 2% Discount Rate 9% he appropriate discount rate is a reflection of the inherent risk of the company. Note :
Need the formula
Growth Rate 2% Discount Rate 9% he appropriate discount rate is a reflection of the inherent risk of the company. Note : Discount rates generally range between 6% and 12%. The calculation of discount rates is discussed in detail in Valuation (Workbook 11). he simple model below applies these assumptions. Terminal Value 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total 283.64 Free Cash Flow 10.20 10.40 10.61 10.82 11.04 11.26 11.49 11.72 11.95 10.00 109% 174.14 258% 119% 130% 141% 154% 168% 183% 199% 217% 237% Discount Factor Discounted Cash Flow 9.17 8.59 8.03 7.52 7.04 6.58 6.16 5.76 5.39 5.05 67.49 136.78 Je have added the Total Free Cash Flow and Discounted Cash Flow in the rightmost column. he value of a company is the Discounted Cash Flow of all future Free Cash Flow herefore, this company is valued to be $136 dollars in the current year. ou are now going to develop forecasts for this company. the Growth Rate was 5% and the Discount Rate was 12% what would be the value of the company (DCF)? the Growth Rate was 0% and the Discount Rate was 6% what would be the value of the company (DCF)Step by Step Solution
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