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You are going to calculate the terminal value of TND Ltd for finding the value of the firm. You find that the company has a
You are going to calculate the terminal value of TND Ltd for finding the value of the firm. You find that the company has a current capital investment of $143 million that generates an after-tax return on capital of 14 percent. Analysts suggest that the firm is going to reinvest 65 percent of its after-tax operating income back into the business for the next 4 years and thereafter the stable growth rate would be 25 percent. The cost of capital for the firm is 12 percent. Estimate the terminal value for the firm at the end of the Year-4. (Write your answer in million-dollar rounded to two decimal places. For example, if your answer is $1.234 million, write only' 1.23:)
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