What is an appropriate estimate of havasham terminal value

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Reference no: EM133363289

Question:

2015 2016 2017

Projected EBIT $ 317 $ 339 $ 363

Earnings after tax 197 210 225

Free cash flow135 144 155

Havasham's WACC 8.2%

Expected growth rate in FCFs after 2017 4.0%

Warranted MV firm/FCF in 2017 19.4

Warranted P/E in 2017 18.7

What is an appropriate estimate of Havasham's terminal value as of the end of 2017 using the perpetual-growth equation as your estimate?

Reference no: EM133363289

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