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The terminal value of a firm is based on which one of these assumptions? The growth rate of the future cash flows will exceed the
The terminal value of a firm is based on which one of these assumptions?
The growth rate of the future cash flows will exceed the firm's WACC. | |
All future cash flows will be constant. | |
The cash flows after Time T will diminish on an annual basis. | |
The cash flows will increase in the future at a constant perpetual rate. | |
The firm will be sold at Time T for the stated terminal value. |
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