b) Use the free cashflow model to calculate the value of the company. (10) Year 0 1 2 3 Free cash flows Terminal value* Net relevant cash flows P/Y CF0 CF1 CF, 2 CF3 NPV FCF per share

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15MC: The IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return...
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b) Use the free cashflow model to calculate the value of the company. (10)
Year
0
1
2
3
Free cash flows
Terminal value*
Net relevant cash flows
P/Y
CF0
CF1
CF, 2
CF3
NPV
FCF
per
share
Transcribed Image Text:b) Use the free cashflow model to calculate the value of the company. (10) Year 0 1 2 3 Free cash flows Terminal value* Net relevant cash flows P/Y CF0 CF1 CF, 2 CF3 NPV FCF per share
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