FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 8 In the terminal value calculation, when the return on capital is equal to the cost of capital, the terminal value is invariant to

image text in transcribed

Question 8 In the terminal value calculation, when the return on capital is equal to the cost of capital, the terminal value is invariant to the growth rate in sales or FCF (That is, increasing the stable growth will have no effect on value.) Therefore, the big assumption you make when forecasting the terminal value is on the ROIC in perpetuity, not on the growth rate. O True O False Question 8 of 10

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Catechism Of Money

Catechism Of Money

Authors: Joseph P. Root

1st Edition

1377114929, 978-1377114927

More Books

Students also viewed these Finance questions

Question

★★★★★
Your client was the beneficiary of an annuity contract purchased by her stepmother. When the stepmother died, the insurance company paid the client $400,000 and sent her a Form 1099 indicating that...

Answered: 1 week ago

Question

★★★★★
2. Search the Internet for knowledge management products and systems and create categories for them. Assign one vendor to each team. Describe the categories you created and justify them.

Answered: 1 week ago

Question

★★★★★
A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per bag. Lead time is...

Answered: 1 week ago

Question

★★★★★
Question 8 In the terminal value calculation, when the return on capital is equal to the cost of capital, the terminal value is invariant to the growth rate in sales or FCF (That is, increasing the...

Answered: 1 week ago

Question

★★★★★
An environmental agency took a map of a region near a former industrial waste dump and placed a grid of 538 squares on it. They divided the plots into 18 groups and collected soil samples from every...

Answered: 1 week ago

Question

★★★★★
The focus of the Common-Metric Questionnaire is: a. describing jobs at a level of difficulty that allows the descriptions to be compared across jobs b. describing jobs in a highly specific manner to...

Answered: 1 week ago

Question

★★★★★
A researcher based in Cyprus wants to learn about the experiences and outcomes of college students in Cyprus. She plans to conduct in-person interviews all over Cyprus with the students she samples....

Answered: 1 week ago

Question

★★★★★
Write in Matlab. Figures to be used are attached below. Implementation code library: [Ix, Iy] = derivative5(im, x, y); Ix2 = gaussfilt(Ix.2 , sigma); Iy2 = gaussfilt(Iy.2 , sigma); (x, y) coordinates...

Answered: 1 week ago

Question

★★★★★
The case which was one of the first to use strict scrutiny of government actions was Korematsu v. United States Bush v. Gore United States v. Nixon Brown v. Board of Education of Topeka, KS

Answered: 1 week ago

Question

★★★★★
please explainthe relationship between troubleshooting and small-parts/fastener repair by addressing the following question. Do you believe it's reasonable to attempt to troubleshoot a customer's...

Answered: 1 week ago

Previous Question Next Question