Suppose the horizon date is set at a time when the firm will run out of positive

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Suppose the horizon date is set at a time when the firm will run out of positive NPV investment opportunities. How would you calculate the horizon value? What is the P/EPS ratio when PVGO = 0?

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Principles of Corporate Finance

ISBN: 978-1260013900

13th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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Question Posted: Sep 27, 2019 12:24 PM

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Suppose the horizon date is set at a time when the firm will run out of positive

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Principles of Corporate Finance

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