Question: #20) Write a user defined function in VBA called 'QuickDCF' that computes enterprise value for a firm (i.e., discounts short term cash flows as well

#20) Write a user defined function in VBA called 'QuickDCF' that computes enterprise value for a firm (i.e., discounts short term cash flows as well as a terminal value to the present). You will have five inputs: 1) a single first-year free cash flow, 2) a short-term free cash flow growth rate, 3) a long-term free cash flow growth rate, 4) the firm's WACC, and 5) the number of years your expect short-term growth for the firm to persist (i.e., your function should flexible to allow for five, six or even seven years of short-term free cash flow growth). Use your function to compute the enterprise value for a firm with the information below. You do not need to do mid-year discounting. Hint: Terminal value will need to be computed and discounted within the function.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!