Adjusted cash flow from assets in the previous problem


Question: Adjusted Cash Flow from Assets. In the previous problem, instead of a perpetual growth rate in adjusted cash flow from assets, you decide to calculate the terminal value of the company with the price-sales ratio. You believe that Year 5 sales will be $9.5 million and the appropriate price-sales ratio is 3.5. What is your new estimate of the current share price?

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Finance Basics: Adjusted cash flow from assets in the previous problem
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