Terminal value using the multiple method


Webster Global Partners (WGP) is evaluating an investment in MiCasa, SA., a distributor of home appliances. As with any venture capitalist, they seek to sell out after 5 years. WGP estimates a free cash flow multiple of 2.9. Free cash flow in year 5 is expected to be $145 million. MiCasa, S.A. is expected to be sold at its terminal value. Calculate the terminal value using the multiple method.

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Business Management: Terminal value using the multiple method
Reference No:- TGS059673

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