Intrinsic value Q6

Sriram Somayajula Admin

Value of a share consists of value for explicit ( known) period and Terminal value. The terminal value is also computed in the year before terminal value CF year. Hence the terminal value CF is first arrived at and the same is then rediscounted to year 1

Sriram Somayajula Admin

Value of a share consists of value for explicit ( known) period and Terminal value. The terminal value is also computed in the year before terminal value CF year. Hence the terminal value CF is first arrived at and the same is then rediscounted to year 1

Thread Starter

Tell me why g in numerator is 5 percent and in denominator 15 percent

Sriram Somayajula Admin

That is incorrect - denominator also should have been 5% that is a mistake