A colleague recommends a shortcut to value the company in Question 2. Rather than compute each scenario
Question:
Rather than compute each scenario separately, he recommends averaging each input, such that growth equals 4 percent and ROIC equals 12 percent.
Will this lead to the same enterprise value found in Question 2? Which method is correct? Why?
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Related Book For
Valuation Measuring and managing the values of companies
ISBN: ?978-0470424704
5th edition
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
Question Posted:
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