A company has a certain number of free cash flows, but requires knowing the value of the
Fantastic news! We've Found the answer you've been seeking!
Question:
A company has a certain number of free cash flows, but requires knowing the value of the terminal flow. The latest projected flow is $367,290, its expected growth after inflation is 3.5% and its cost of debt is 2.7% and its cost of capital is 2.1%.
In addition to calculating the value of the terminal flow, you must explain what it represents, why it is calculated this way and your conclusions from the result, if the risk-free rate is 2%
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: