Question: Base year 1 6.00% 106.00 Expected growth EBIT (1-t) - Reinvestment FCFF 100.00 40.00 60.00 2 3 6.00% 6.00% 112.36 119.101 44.94 47.64 67.42 71.46

 Base year 1 6.00% 106.00 Expected growth EBIT (1-t) - Reinvestment

Base year 1 6.00% 106.00 Expected growth EBIT (1-t) - Reinvestment FCFF 100.00 40.00 60.00 2 3 6.00% 6.00% 112.36 119.101 44.94 47.64 67.42 71.46 (in million rupiahs) 42.40 63.60 Assuming that the company's return on capital will stay unchanged forever and that the cost of capital is 8%, estimate the terminal value for the firm, i.e., the value at the end of year 3, if the growth rate beyond year 3 is 3% in perpetuity

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!