A software venture capital expects that to issue an IPO in 5 years and the firm forecasted ₱10 million net income. The same firm is listed in the PSE and its current market price per share (MPPS) is ₱50 and its earnings per share (EPS) is ₱5.00. Assume that the investors of the software VC expects a target rate of return of 20%, the discounted terminal value of the firm would be?

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To calculate the discounted terminal value of the firm we can first estimate future earnin... View the full answer