Tatilya is a budget travel company and will go public in 2021. Based on the company and

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Tatilya is a budget travel company and will go public in 2021. Based on the company and market information below, what is the expected terminal value of the Company in 2029?

Weighted average cost of capital: 11%

Marginal Tax rate: 24%

2020 Free Cash Flow (FCF) = $1.29 billion.

FCF's expected annual growth rate for the budget travel industry as predicted by analysts:

14% per year until 2029

a fixed annual rate of 8% after 2029 for the foreseeable future.

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Corporate Finance

ISBN: 9781260772388

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Jul 19, 2023 07:09 AM

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Tatilya is a budget travel company and will go public in 2021. Based on the company and

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To calculate the expected terminal value of the company in 2029 we need to use the discounted cas... View the full answer

Corporate Finance

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