Question
You are trying to determine the terminal value for a firm you are trying to value. Your terminal year EBIT(1-T) is 100, reinvestment rate 30
You are trying to determine the terminal value for a firm you are trying to value. Your terminal year EBIT(1-T) is 100, reinvestment rate 30 percent, cost of capital is 10 percent and growth is 3 percent. What is the terminal value (not PV at t=0 of terminal value)?
a. 1000
b. 700
c. 1030
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick, Ayako Yasuda
3rd Edition
1119490111, 978-1119490111
