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What is the terminal value of an LBO when the next year's free cash flow is $75 million, the WACC is 12%, and the
What is the terminal value of an LBO when the next year's free cash flow is $75 million, the WACC is 12%, and the perpetual growth rate is 2%? What is the multiple of investment when a private equity fund initially invests $1 million, holds the investment for 6 years, and realizes an IRR of 25%?
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To calculate the terminal value of an LBO we use the formula TV FCF ...
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
