Using the constant growth perpetuity approach the firm


The final cash flow projection a firm makes for an infinitely lived project is $4.2M. Using the constant growth perpetuity approach, the firm estimates a terminal value at the end of the projection period equal to $69.3M. This terminal value implies that the final projected cash flow is expected to grow at what constant rate forever, assuming the firm’s cost of capital is 14%?

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Financial Management: Using the constant growth perpetuity approach the firm
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