Question
You are running a start up company. Analysts predict that its cashflow will grow at 30% per year for the next five years starting from
You are running a start up company. Analysts predict that its cashflow will grow at 30% per year for the next five years starting from $1,000,000 that was just realized. After 5 years, cashflow growth is expected to slow to 2% per year and continue at that level. What is the present value of the firm's cash flow? Use perpetuity formula.
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Financial Markets And Corporate Strategy
Authors: Mark Grinblatt, Sheridan Titman
2nd Edition
0071157611, 9780071157612
