Question: Adjusted Cash Flow from Assets. In the previous problem, instead of a perpetual growth rate in adjusted cash flow from assets, you decide to calculate
Adjusted Cash Flow from Assets. In the previous problem, instead of a perpetual growth rate in adjusted cash flow from assets, you decide to calculate the terminal value of the company with the pricesales ratio. You believe that Year 5 sales will be $9.5 million and the appropriate pricesales ratio is 3.5. What is your new estimate of the current share price?
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