Terminal value plays an important role in enterprise

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Terminal Value plays an important role in enterprise valuation. What factors affect the estimate of Terminal Value? How sensitive enterprise valuation is to Terminal value?

Please choose a set of parameters yourself and report, what percentage the terminal value contributes to the total enterprise value? How sensitive is your valuation?

You may use your own numbers or the following inputs: Gross Margin 40%
Fixed Costs $2,000
Revenue Growth Rate for Years 1 to 5 10%
FCF Steady Growth 3%
Discount Rate 12%
Year 1 Revenue $5,000
Tax Rate 35%
Terminal Year 5

Please also submit your calculations in Excel

Reference no: EM13497324

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