Question
Pick a CFFA 0 between $2,000,000 and $3,500,000 annually for a constant growth firm. We will call this firm the subject firm, and we will
Pick a CFFA0 between $2,000,000 and $3,500,000 annually for a constant growth firm. We will call this firm the subject firm, and we will assume that this firms cash flows from assets are growing at a constant rate of 2% annually. Comparable constant growth firms are selling for $50,000,000 with CFFA0 of $2,750,000 and have a constant growth rate in their Cash Flows from Assets of 3%. Furthermore, assume that you have no reliable way to calculate the subject firms WACC. Given all of these conditions, you are to provide an estimate of value for the subject firm.
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