Estimate a venture's terminal value based on the following information: current year's net income = $20,000; next year's expected cash flow = $26,000; constant future growth rate = 9%; and venture investors' required rate of return = 20%.
- 236,363
- 156,840
- 285,714
- 200,00
Estimate a venture's required rate of return based on the following information: terminal value = $400,000; current year's net income = $20,000; next year's expected cash flow = $24,000; and a constant growth rate = 7%.