Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the we calculate the terminal value of a venture using year 8cash flow estinates and get the number $3496 pe share with a discount

image text in transcribed

Suppose the we calculate the terminal value of a venture using year 8cash flow estinates and get the number $3496 pe share with a discount rate of 14%. What is the reversion value per share to the nearest penny? Match the term with the correct definition. ACurrent assets less surplus cash minus current liabilities, or Pre-money valuation Post-money valuation Explicit forecast period Net operating working capital (NOWC) net working capital less surplus cash B. The period in which forecasts for financial statements are made explicitly Thepresent value including an additional investment The present value before receiving additional investment The difference between discount rate and the growth rate of a venture's cash flows is referred to as the reversion value pseudo dividend post-money valuation capitalization rate

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_2

Step: 3

blur-text-image_3

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

Global Corporate Finance A Focused Approach

Authors: Kenneth A. Kim

1st Edition

9814335827, 9789814335829

More Books

Students also viewed these Finance questions

Question

Describe the methodology used in BPR approaches.

Answered: 1 week ago

Question

What is the per-capita cost?

Answered: 1 week ago

Question

Timeline for progress report

Answered: 1 week ago