medium · Investment Banking
An analyst uses the Exit Multiple Method to find a terminal value in a DCF. The Year 5 EBITDA is $300 million and the exit multiple is 8.0x.
If the WACC is 10% and the Year 5 Unlevered Free Cash Flow is $150 million, what is the implied perpetuity growth rate?
- 6.25%
- 2.00%
- 3.53%
- 4.25%
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