Question
Your DCF of Hillyaut NV values the firm at 3,000m and its equity at 2,500m. At the same time your forecasts for economic profit suggest
Your DCF of Hillyaut NV values the firm at 3,000m and its equity at 2,500m. At the same time your forecasts for economic profit suggest a present value (PV) of economic profit of 2,000 using a cost of capital of 7.0%. What multiple of invested capital should the business be valued?
a. 1.5x
b. 2.0x
c. 2.5x
d. 3.0x
e. None of the above
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Financial Mathematics
Authors: Cacildo Marques
1st Edition
8741574710, 979-8741574713
