- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
DOUBT – OPTION 2 MANGEMENT BUYOUT
in the note they have told us that the cash flow for the first year will increase by 8% and then stay fixed for foreseeable future
I’m that case we should have found out the value in two phases
Phase 1 – increase the cash flow by 8% and discount it at present value
Phase 2 – calculate the
Perpetuity of cash flow and discount it to PVTOTAL VALUE = VALUE AT PHASE 1 AND VALUE AT PHASE 2
WHY HAVE THEY CALCULATED IT DIFFERENTLY?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.