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Which of the following statements is (are) TRUE? Select one or more alternatives: It is reasonable to assume that a business has a terminal growth
Which of the following statements is (are) TRUE? Select one or more alternatives: It is reasonable to assume that a business has a terminal growth rate higher than the long-term growth rate of the economy. The terminal growth rate is the growth rate used to estimate the terminal value of a business. When sales of a new product displace sales of an existing product, the situation is often referred to as 0 cannibalisation. If the IRR of a project is equal to the cost of capital, the NPV will be zero. Interest expenses from borrowing should be subtracted from EBIT to estimate free cash flow to firm
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