Question
You work for a company that has projected the following cash flows: Year 1: $2 million; Year 2: $3 million; Year 3: $4.5 million. Comparable
You work for a company that has projected the following cash flows: Year 1: $2 million; Year 2: $3 million; Year 3: $4.5 million. Comparable companies have P/E ratios of 4x. What is the terminal value of the company?
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To calculate the terminal value of the company we can use the pricetoe...
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
5th edition
1259289907, 978-1259289903
