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How sensitive is valuation to inputs

Assignment Help Financial Accounting
Reference no: EM132937271

Using the following set of parameters:

Gross Margin 40%

Fixed Costs $2,000

Revenue Growth Rate for Years 1 to 5 10%

FCF Steady Growth 3%

Discount Rate 12%

Year 1 Revenue $5,000

Tax Rate 21%

Terminal Year 5

Question 1: What percentage the terminal value contributes to the total enterprise value?

Question 2: How sensitive is your valuation to inputs?

Reference no: EM132937271

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