medium · Investment Banking valuation-core

In a DCF analysis, you have an EV/EBITDA exit multiple of 10.0x for the terminal year. The terminal year EBITDA is $500 million, WACC is 10%, and Terminal Year FCF is $300 million.

What is the implied perpetuity growth rate (g)?

  1. 5.0%
  2. 3.8%
  3. 2.0%
  4. 10.0%

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