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NENTE CO – JUN 2012

This topic has 1 reply, 2 voices, and was last updated 7 months ago by John Moffat.

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May 25, 2024 at 2:45 am #705961
Labdhi-16
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Hi sir,
please can you explain why in this question when calculating FCF we have not discounted them?
May 25, 2024 at 10:02 am #705989
John Moffat
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It has been discounted.
Because it is a cash flow growing in perpetuity we use the dividend growth formula to calculate the present value. we use the same formula to calculate the PV of any growing perpetuity.
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