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

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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? (Hint: 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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Posted Date: Jun 20, 2019 12:33 AM

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

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Principles of Corporate Finance

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