CH 02 Gross Income and Exclusions - Test Bank Town

You have been asked to calculate a terminal value for a valuation forecast. The normalized free cash flow within the forecast is $ 11,400. A nominal growth rate of 3% will be applied along with a weighted average cost of capital of 15%. Using the dividend growth model, the terminal value that should be added to the forecast is: $ 78,280. $ 86,200 ................
................