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?

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!