Refer to sheet T9-2d in the Lecture Week 6 file. Two models are used to estimate terminal values. Using the Gordon model, what would be the terminal value if the growth rate is 3% and the discount rate is 8.80% ?

Method #1 - DCF Using the Gordon Growth Model
Terminal Value Multiples from the Gordon Model (DCF)
			Growth Rates
Disc.Rate	0%	1%	2%	3%
8.30%	12.05	13.84	16.19	19.43
8.80%	11.36	12.95	15.00	17.76
9.30%	10.75	12.17	13.97	16.35
9.80%	10.20	11.48	13.08	15.15