Multiple Choice
The terminal value of a company is based on which one of these assumptions?
A) The growth rate of the future cash flows will exceed the company's WACC.
B) All future cash flows will be constant.
C) The cash flows after Time T will diminish on an annual basis.
D) The cash flows will increase in the future at a constant perpetual rate.
E) The company will be sold at Time T for the stated terminal value.
Correct Answer:
Verified
Correct Answer:
Verified
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