Question
Time t=1 t=2 t=3 NOPAT 60 70 80 FCF 44 40 50 WACC =10%; g=2% (growth rate in perpetuity). Year 3 (t=3) is the beginning
Time t=1 t=2 t=3
NOPAT 60 70 80
FCF 44 40 50
WACC =10%; g=2% (growth rate in perpetuity). Year 3 (t=3) is the beginning of PERP.
1. Use the RI valuation model to compute the value of CORE (V) at t=0, assuming the initial value of NOA is (I) 400 (NOA @ t=0), (ii) 100 (NOA @ t=0)
V=?
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
2nd Edition
0133001873, 978133001877
