You are creating a DCF for a company with the following year 5 (2024) financial information: ($

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You are creating a DCF for a company with the following year 5 (2024) financial information: ($ millions)

Year 2024

Depreciation 50

EBIT 200

Capital Expenditures 90

Investment in NWC 15

Discount Rate 9%

Long Term Growth Rate 3%

Tax rate = 29%

You have calculated a year 5 Terminal Value which is based on a perpetuity of unleveredFree Cash Flow growing at the long-term growth rate of 3%. Using this Terminal Value calculation, what is the implied valuation multiple of Year 5 (2024) EBITDA?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Oct 19, 2023 12:11 AM

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You are creating a DCF for a company with the following year 5 (2024) financial information: ($

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To calculate the implied valuation multiple of Year 5 2024 EBITDA using the Terminal ... View the full answer

Income Tax Fundamentals 2013

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