Exercise

Calculate the Terminal Value

In this exercise, you are asked to calculate the present value of the Terminal Value using the Perpetuity with Growth formula. The FCFE projections for 2017 to 2021 are in the fcfe object. The perpetuity growth rate of 3.0% (pgr) and cost of equity of 11.55% (ke) are stored in memory.

Instructions

100 XP

Extract the 2021 FCFE value from the fcfe data object, which is the fifth element in the object.
Calculate the terminal value.
Calculate the present value of the terminal value.

Take Hint (-30 XP)