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- Quiz Question 1 of 5
After projecting UFCF for our forecast period, we need to calculate Terminal Value for the cash flow generated beyond our forecast period. This Terminal Value represents the Enterprise Value at the end of our forecast period. Therefore, adding up the Present Value of the Terminal Value and the Present Value of the Projected UFCF during our forecast period gives us the Intrinsic Enterprise Value as of our valuation date.
ExplanationExplanationChoose the best answer below: - Quiz Question 2 of 5
Terminal Value in a DCF based on Unlevered Free Cash Flow represents the Enterprise Value at the end of our forecast period.
ExplanationExplanationChoose the best answer below: - Quiz Question 3 of 5
Company has $1.3 billion of UFCF in the terminal year. It has a WACC of 7% and Perpetuity Growth Rate of 3%. What is the Terminal Value based on the Perpetuity Growth Method?
ExplanationExplanationChoose the best answer below: - Quiz Question 4 of 5
Company has $253 million of Adj. EBITDA in the terminal year. You believe that the company is worth 10x on a trailing EBITDA multiple basis and 9.3x on a 1-Year Forward EBITDA multiple basis. What is the Terminal Value based on the Terminal Multiple Method?
ExplanationExplanationChoose the best answer below: - Quiz Question 5 of 5
You’re valuing the Company on July 1st 2021 and the company’s fiscal year ends Dec 31. You project the Company to have a Terminal Value of $2 billion in 2026 based on the Perpetuity Growth Method. It has a WACC of 8% and Perpetuity Growth Rate of 3.5%. What is the Present Value of Terminal Value?
ExplanationExplanationChoose the best answer below:
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