The simplicity of terminal tax as a percentage of terminal value
makes it worth using the models for narrative purposes, even though they do not capture impact of timing on tax value.
At 20% of homes passed, the Net Present Value is only positive when considering the terminal value
102) Indeed--and in a striking in stance of internal inconsistency--the Delaware courts have accepted DCF valuations based on terminal values
estimated using an exit multiple approach, without making any IMD-type upward adjustment to the terminal value
The present value of the forecast cash flows plus the present value of the terminal value
generates the "enterprise value" of the company--the total value of the business, including its debt and equity.
In this case, the 401(k) plan yields the greatest terminal value
The comparison assumed some premises in relation to the terminal value
by adopting two measures for each valuation model.
Equation (1) is empirically estimated as the present value of expected residual income for the next five years plus a terminal value
, calculated as of the end of the fifth forecast year (T[V.
WACCj]) Valuation of the Unlevered Firm plus the Tax Shield Terminal Value
Dignity was addressed by the participants as a terminal value
(a desirable end-state), an instrumental value (a desirable mode of conduct), and a value underlying all of the different forms of end-of-life decisions.
The standard approach to estimating the terminal value
of the debt and equity assumes the firm reaches steady state by the terminal date, and computes the terminal value
as a FCF perpetuity growing at a constant rate g, [E.
I TOOK out a 100 per cent mortgage of pounds 69,000 in 1990, but the insurers now tell me the policy's terminal value
will be only pounds 49,000.
When appraisers calculate the net cash flow in a capitalization-using either the single-period capitalization method or calculating the terminal value
in the multi-period discounting method--the calculation is based on an assumption that annual cash flows will grow to infinity at an implied rate.