Doubt fm plz solve

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Data of D's corp Current & projected free cash flows shown below Actual: ₹606.82 in2013 Projected 2014 = ₹667.50 2015=₹707.55 2016= ₹750.0 Growth is expected to be constant after 2015 & wacc is 11%. What is continuing or horizon or terminal value at 2016 if growth from 2015 remains constant???????
Replies (4)

Dear Mam,

Terminal Value will be 15900...

 

 

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Thankyou. Can you explain the steps and you used please.......

it was calcuated by formula:-

Last year's FCF * (1+growth rate) / (WACC-growth rate)
= Rs. 750 * 1.06 / .11-.06 = Rs. 15900....

Ohh okay... thank you so much again.:)


CCI Pro

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