User Account

All Pages

Terminal value plays an important role in enterprise valuat

Assignment Help Financial Accounting
Reference no: EM13829343

Terminal Value plays an important role in enterprise valuation. What factors affect the estimate of Terminal Value? How sensitive enterprise valuation is to Terminal value? After choosing a set of input parameters yourself or using the numbers givn below, please answer the following questions

1.     what percentage the terminal value contributes to the total enterprise value?

2.     How sensitive is your valuation to inputs?

Suggested inputs: 
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 35%
Terminal Year 5

Reference no: EM13829343

Questions Cloud

Determine the type of muscle tissues : The image below shows a longitudinal view of a type of muscle.  Note the multiple nuclei that lie at the periphery of the muscle fibers as well as the striations (thin lines) formed by the arrangement of the thick and thin myofilaments.
What does he mean by internalize society values : What does he mean by "internalize society's values"? List activities that can assist you in "internalizing the values"
Shares of series e convertible preferred stock : In November 2009, Accel Growth Fund invested $20 million in Groupon by buying 2,932,553 shares of Series E convertible preferred stock. What was the realized IRR of this investment, if  the fund sold at IPO and "each share of Series E preferred stock..
Is the health care system in a crisis related to quality : Do you believe that the health care that we have today versus the health care we could have is not just a gap, but a chasm? Yes or no, why or why not?
Terminal value plays an important role in enterprise valuat : Terminal Value plays an important role in enterprise valuation. What factors affect the estimate of Terminal Value? How sensitive enterprise valuation is to Terminal value? After choosing a set of input parameters yourself or using the numbers givn b..
Conducting vulnerability assessment and penetration test : Management is pleased with the progress that has been made, and likes the steps you have taken to set up a secured network environment.
Developing the subnet calculator using visual studio : Create a Visual Basic .NET Windows Application with the following user requirements:
Study mead meals on wheels center : Read Case Study Mead Meals on Wheels Center-Part I (from Chapter 4) and Part II (from Chapter 5). Using the information in the case study problems, especially Problem 3 (from Part II), discuss the following: MMWC buys the equipment to expand their se..
What is the force pair in this experiment : Explain what caused the balloon to move in terms of Newton's Third Law. What is the force pair in this experiment? Draw a Free Body Diagram (FBD) to represent the (unbalanced) forces on the balloon/straw combination

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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