Company ABC is a new manufacturing company and it forecasted that their annual revenue will be...
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Company ABC is a new manufacturing company and it forecasted that their annual revenue will be $100,000 starting one year from now. Then they expect it will grow by 5% each year till the end of year 5. Thenafter, revenue stream will remain constant for perpetual years ahead. What is the PV of forecasted revenue streams of the company today, if the market interest rate is 7%? Company ABC is a new manufacturing company and it forecasted that their annual revenue will be $100,000 starting one year from now. Then they expect it will grow by 5% each year till the end of year 5. Thenafter, revenue stream will remain constant for perpetual years ahead. What is the PV of forecasted revenue streams of the company today, if the market interest rate is 7%?
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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