Question: Using the following set of parameters: Gross Margin 40% Fixed Costs $2,000 Revenue Growth Rate for Years 1 to 5 10% FCF Steady Growth 3%
Using the following set of parameters:
Gross Margin 40% Fixed Costs $2,000 Revenue Growth Rate for Years 1 to 5 10% FCF Steady Growth 3% Discount Rate 12% Year 1 Revenue $5,000 Tax Rate 35% Terminal Year 5
please answer the following questions
what percentage the terminal value contributes to the total enterprise value? How sensitive is your valuation to inputs?
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