medium · Investment Banking
An analyst determines that the Exit Multiple Method (EMM) for a DCF terminal value results in a value of $10,000 million. The terminal year EBITDA is $1,000 million and the WACC is 10%.
If the terminal year Free Cash Flow is $600 million, what is the implied perpetuity growth rate (g)?
- 4.0%
- 2.0%
- 10.0%
- 6.0%
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