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When valuing a firm with the weighted average cost of capital, the blank______ value of the firm can be estimated by assuming a constant perpetual growth rate for cash flows beyond the horizon.

Respuesta :

The firm's blank command line value can be calculated by assuming a continual perpetual rate of growth for cash flows beyond the horizon.

How does terminal value work?

An asset, company, or project's value after the anticipated time frame at which future cash flows can be predicted is known as its terminal value (TV). A business will supposedly continue to grow at a specific rate after the forecast period, according to the concept of terminal value.

Uses for terminal value:

The terminal value (TV) of a business is its estimated present value after the explicit forecast period. The Gordon Growth Model, special discount cash flow, and residue left earnings computation.

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