Ex. 2-With Terminal Value Operating Cashflow $ 100 $ 110 $ 120 $ 30 $ $ 100 $ 120 $ 140 $ 180 $ 200 Сарех $ (50) $ (55) $ (60) $ (50) $ (50) $ (120) $ (60) $ (70) $ (80) $ (80) Free Cash Flow $ 50 $ 55 $ 60 $ (20) $ (50) $ (20) $ 60 $ 70 $ 100 $ 120 Terminal Value $ 2,040 $ 2,160 Discount Rate 8% Growth 2% Present Value $ 46 $ 47 $ 48 $ (15) $ (34) $ (13) $ 35 $ 38 $ 50 $1,000 Total Value $ 1,203 Discount Rate formula 6% 7% 8% 9% 10% 11% 12% 0% 1% 2% Growth Rate 3% 4% 5% 6%
Ex. 2-With Terminal Value Operating Cashflow $ 100 $ 110 $ 120 $ 30 $ $ 100 $ 120 $ 140 $ 180 $ 200 Сарех $ (50) $ (55) $ (60) $ (50) $ (50) $ (120) $ (60) $ (70) $ (80) $ (80) Free Cash Flow $ 50 $ 55 $ 60 $ (20) $ (50) $ (20) $ 60 $ 70 $ 100 $ 120 Terminal Value $ 2,040 $ 2,160 Discount Rate 8% Growth 2% Present Value $ 46 $ 47 $ 48 $ (15) $ (34) $ (13) $ 35 $ 38 $ 50 $1,000 Total Value $ 1,203 Discount Rate formula 6% 7% 8% 9% 10% 11% 12% 0% 1% 2% Growth Rate 3% 4% 5% 6%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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