medium · Private Equity value-creation
A company is being valued using a Gordon Growth DCF. The Year 5 Free Cash Flow to the Firm (FCFF) is projected to be 40.0 million.
If the WACC is 10% and the long-term sustainable growth rate is 3%, what is the Terminal Value at the end of Year 5?
- 571.4 million
- 400.0 million
- 588.6 million
- 1,333.3 million
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