Explain terminal value calculation at end of forecast period, Financial Management

Assignment Help:

Explain the terminal value calculation at the end of the forecast period.  Why is it necessary?

The organization whose business operation is being valued is not supposed to suddenly cease operating at the end of the discrete forecasting period, although to continue operating indefinitely into the future since a going concern. The terminal value calculation calculates the values of the cash flows that take place in the year subsequent the discrete forecasting period and beyond.


Related Discussions:- Explain terminal value calculation at end of forecast period

Show the disadvantages of adjusted discount rate, Q. Show the Disadvantages...

Q. Show the Disadvantages of adjusted discount rate? (1) The risk premium rates resolute under this method are arbitrary. Therefore this method mayn't give objective results.

Special bond structures, Special bond structures are the municipal se...

Special bond structures are the municipal securities bearing special security structures. They are of two types - insured bonds and pre-refunded bonds.

Performance of mutual funds, Performance of Mutual Funds The performanc...

Performance of Mutual Funds The performance of Mutual Funds can be evaluated by calculating the rate of return earned during the relevant comparison period. The return will inc

Case study - volatility trading, Case Study: Volatility Trading (a) The...

Case Study: Volatility Trading (a) The understanding in this case study deal with Convertible as well as Reverse-Convertible bonds. These are interesting instruments by themsel

Rating elements and symbols, Rating Elements A rati...

Rating Elements A rating agency earns its reputation by assessing the client's operational performance, managerial competence, management and organiza

Net income that the company distributes to shareholders, The dividend is th...

The dividend is the part of the net income that the company distributes to shareholders. As the dividend represents real money, the net income is also real money. Is that true?

State the example to calculate the present value, State the Example to calc...

State the Example to calculate the present value 2, 00,000 $ is the amount which you require after 20 years for your retirement. How much must you invest now at 5% per annum co

Financial reporting, Financial Repor ting The process of prepar...

Financial Repor ting The process of preparing the corporation's financial statements in accordance with generally accepted accounting principles. The statements prepare

WEALTH.., What is the fastest way to be rich?

What is the fastest way to be rich?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd