Calculate the terminal value

Assignment Help Finance Basics
Reference no: EM131401674

Webster Global Parnters (WGP) is evaluating an investment in Pulang, SA., a distributor of home appliances. As with any venture capitalist, they seek to sell out after 5 years. WGP estimates a required rate of return of 9.4%. After five years the growth rate is project to be 4.9% per year. Free cash flow in year 5 is expected to be $137 million. Pulang is expected to be sold at its terminal value. Calculate the terminal value.

Enter answer as ##.#, to one decimal point. Do not discount.

Reference no: EM131401674

Questions Cloud

Create an xslt stylesheet for your xml resume : Create an XSLT stylesheet for your XML resume that uses a client-side transform to display your resume using an HTML table. You should use the resume validated by the XMLSchema for practice with namespaces.
Describe how exactly the technology works : SCI 115- Describe the technology. Discuss what it accomplishes. Elaborate on the scientific principles that make this technology possible. Describe how exactly the technology works. Discuss the biological principles that underlie this technology.
How many workers would the firm hire : If the market wage were $7 an hour, how many workers would the firm hire?
Describe the confidentiality-integrity and availability : Confidentiality, integrity, and availability or the CIA triad of security is introduced in this session. These three dimensions of security may often conflict. Confidentiality and integrity often limit availability. So, a system should provide on..
Calculate the terminal value : After five years the growth rate is project to be 4.9% per year. Free cash flow in year 5 is expected to be $137 million. Pulang is expected to be sold at its terminal value. Calculate the terminal value.
Current international finance related issue : You are required to do a short 10-minute presentation on any current international finance related issue. You are free to choose any current international-finance related issue or news based on your own interest. Besides the Internet, some other g..
What is the advantage of prizes over patents : One of the things that is slowing the development of nanotechnology is the legal morass of patents that anyone working with new ideas must deal with.
Why scientist choose to use rrna as evolutionary chronometer : SCI115- In your own words explain the concept of rRNA then suggest three reasons why scientists choose to use rRNA as an Evolutionary Chronometer.
Fit a straight line to the relationship of weight by year : According to these models, in what year will the predicted weight of the Williams College team from Exercise first be more than the weight of the University of Texas team?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd