WhatsApp us

# The Terminal Value

Need a hand with your homework? Get expert help now and smash those grades! 💯 Submit your assignment today!

100% human expertise, no AI. 🤖

• Experienced Tutors
• On-Time Delivery
• Plagiarism-Free Work
Order Homework Help From Experts
What should we call you?
Zero spam guarantee.

## Hire Best Homework Helpers

MyHomeworkHelp is proud to work with a team of expert professionals with verified academic credentials, selected for their proven skills in their field of study.

Confidently hire experts from the top universities across the globe.

## Benefits & Assurances

### Chat With Expert

Coming back to the third goal, it is to determine the value of terminal market of the firm. This is the value which gives the value of the firm which can be sold for in the future at time T which can be calculated by the growing pertuity formula as follows:

Let’s reply the remainder on the cash flow forecast which is direct from the table 202. But here, you will still require the estimates for the growth rate of the company eventually.

Let’s consider the cost of future of capital initially:

20.5 A the Cost of Capital

One can rely on the CAPM in order to determine capital cost for the company Pepsi Co for the year late 2001. If the company is not listed in publicly traded, you can use the data from the comparable company like Coca-Cola. Table 20.5 includes the prices of stock on the company Yahoo, Pepsi Co. and Coca Cola. In order to determine the rate of return in the past, you can use this table to obtain the prices as mentioned below:

(Considering an example: r = 1,101.75/1,049.34 − 1 ≈ 4.995). With the calculated return rate, one can now determine the required statistics from the historical data:

This list of the statistical data will help you with the calculation of equity beta from historical data of PepsiCo and Coca-Cola:

Now the question here is which estimate is the best one supporting the future equity beta of Pepsi Co?

• Consider 0.7 as the historical equity beta of Pepsi Co
• Or you will consider that the beta value must be shrunken towards the beta average βM,M = 1 in market. This case will reflect the market beta as = (7 + 1)/2 = 0.85.
• You will look for industrial beta which is more reliable and trustable than Pepsi Co own beta as they rely on the historical outlay of a single firm.
• Or you make an assumption that Coca-Cola and Pepsi Co are similar companies, which means you will choose the value of market beta as 0.46 as an average figure between both the companies which means that the best estimate of beta value will be 0.6.

In order to consider CAPM, one needs to estimate the rate of economy wide which is risk free along with premium of equity:

The risk-free rate: The treasury yield of 5-year and 20 year was calculated as 4.4% and 5.7% in the year end of 2001 respectively. So one can choose 10 years as the rate of interest for Pepsi Co which means rate is 5% per year approximately.

The Equity Premium: Let’s consider that the board members of Pepsi Co. along with management have declared 3% as per the standard estimate.

So let’s consider this as 7%. This means that estimate of the capital cost for Pepsi Co. is between 5 to 10%.

20.5 B the Cost of Capital minus the Growth Rate of cash Flows

You are still in need of an estimation of growth rate of cash flows under expected eternal (E(g)) for the perpetuity formula or we can say, capital cost E(r) subtracted by this rate of growth. One can notice that it is easier to assume the upper bounds which are high on the sustaining rate of growth which is true for lower bounds too.

But a company like Pepsi CO. is hardly to experience lower bound but one can assume the same in order to realize the real rate of growth.

But you need some additional information to estimate the same. The following resources will help you with the required information:

1. Internal Company information: Getting the internal information from a company like Pepsi CO, can be really tough. But the publically traded information can value at some extend. But if you are an internal analyst of the firm, you can enjoy the ease of internal information easily.
2. Industry or comparable firm information: If you are lucky to get information on the estimate growth rate of competitors like Coca-Cola, the process becomes simpler.

Links of Next Financial Accounting Topics:-

Pricing may change based on requirements

l

## FAQ - Our Homework Help Services

We have put together some commonly asked questions.

K
L

### Is there a website that can do my homework?

Yes, if you are looking for such a site, MyHomeworkHelp is one of the leading homework help websites that can do your homework and assist with various academic needs. Here's all you need to know about our team and how they provide flawless homework help.

If you find yourself thinking, "I need to pay someone to do my homework," our team is ready to assist. It's common for students to seek help with their homework, and our experts are prepared to provide personalized support tailored to your needs.

You can visit www.myhomeworkhelp.com to get all types of homework-related help from our experts.

K
L

### What is the best homework help website?

The best homework help website enhances students' experience of getting homework assistance from experts. MyHomeworkHelp, recognized as one of the best online homework help platforms, serves as both a guide and a solution provider for students. We've been rocking the homework help scene since 2012, assisting over 20k students, and we must be doing something right because more than 70% of them keep coming back for more. Whether you need help understanding concepts, completing assignments, or getting your homework done, MyHomeworkHelp is here to support your academic journey as the best college homework website.

K
L

### How can I get help with my homework?

1. Tell us your homework details

To get started with online homework help, simply choose the type of homework assistance you need. When filling out the order form, make sure to provide detailed instructions, including the deadline, number of pages, grading rubric, and any other relevant information.

Review the details of your homework order and proceed to make a secure payment using VISA, Mastercard, or PayPal. Once the payment is processed, our experts will begin working on your homework immediately.

The completed homework will be delivered directly to your email. This ensures that students receive their homework assistance on time and can meet their academic requirements without stress.

K
L

### Do you guarantee plagiarism-free homework answers?

We take academic integrity very seriously and understand the importance of providing homework answers free of plagiarism. Our tutors are committed to delivering original and unique content for every assignment. Here are the steps we take to ensure your homework is plagiarism-free:

1. Original Work: Each assignment is completed from scratch based on your specific requirements and guidelines.
2. Expert Tutors: Our tutors are highly qualified and experienced in their respective fields, ensuring the work they produce is both original and high-quality.
3. Plagiarism Detection: We use advanced plagiarism detection software to scan every assignment before delivery. This ensures that the content is unique and free of any copied material.
4. No AI Usage: We guarantee that all work is 100% human-crafted expertise, with no AI-generated content involved. This ensures the authenticity and quality of the work provided.
5. Quality Assurance: Our quality assurance team reviews each assignment for originality and adherence to academic standards before it is sent to you.

By following these stringent measures, we guarantee that the homework answers you receive are completely free of plagiarism and AI involvement. You can trust us to provide you with original and high-quality academic assistance.

K
L

### Is your homework service confidential?

Absolutely! Confidentiality is one of the basic guarantees of our service at MyHomeworkHelp.com.

When our customers make their homework orders, they know their information remains 100% confidential.

Even your homework writer will not be provided with your personal details. So, when you hire a professional homework helper on our website, rest assured that your information will remain private and safe.

K
L

### How much do I need to pay to get my homework done?

We do not have monthly fees or minimum payments for our services. Each homework assignment is quoted a unique price, based on the tutor’s estimate of the time required to complete your work. There are no obligations, and you are free to discuss the price quote with the tutor.

When you decide to pay someone to do my homework, our pricing starts at \$13.99 per page. The final pricing depends on various factors including the page count, deadline, nature of the task, and the homework writer’s level of expertise.

We offer flexible payment options, allowing you to make a partial payment to start working on your assignment and pay the remaining amount upon completion. This ensures no pressure of up-front payment and no hidden order costs.

Our dynamic pricing model takes into account the type of assignment, its urgency, and the complexity of the task. For instance, shorter deadlines and more complex assignments may increase the price. You can get an instant quote by selecting your assignment type, deadline, and page count on our website.

K
L

### Who are the experts who will help me with my homework?

We work with subject experts from all over the world. We hire them with the help of complex tests in the disciplines of their expertise. We also verify the IDs and academic transcripts of our homework writers to be sure that our experts have a bachelor's or master’s or a PhD degree. This is how we can be sure of the proficiency of our panel of experts who will help you with your homework. Here's all you need to know about our team and how they provide flawless homework help.

1. Our team comprises top-tier homework helpers who excel in addressing and resolving questions on various topics. Each tutor effectively utilizes their expertise to concentrate on the core subject matter and thoroughly analyze it.
2. Our professional tutors specifically craft each assignment tailored to students' requirements, including preferred formats, citation styles, and essential elements.
3. Whether it’s coursework, dissertations, essays, or case studies, our platform guarantees timely college homework help across a wide range of academic papers. Don’t hesitate any longer; connect with our tutors when you seek help with your homework for perfect assignment solutions and improved grades.

K
L

### Can I chat with my homework helper for updates?

Yes, you can certainly chat with your homework helper on our secure chatboard platform. MyHomeworkHelp.com provides a direct communication channel between you and your assigned expert (while maintaining privacy). This feature allows you to ask questions, clarify instructions, and provide additional information about your homework order to ensure that the help you receive is tailored to your specific needs.

You'll be notified by email whenever there are new messages for you, but we advise regularly checking your personal page to ensure no critical updates from your writer are overlooked.

Should you have an urgent matter to address, do not hesitate to contact the support team for assistance. This system ensures that students can stay updated on their homework paper progress and maintain clear communication with their experts.

K
L

### What makes you the best homework helper?

MyHomeworkHelp is ranked as one of the best online homework helpers, providing exceptional support to students. We've been excelling in the homework assistance arena since 2012, assisting over 200k students, and consistently achieving high satisfaction rates, with more than 70% of our students returning for additional help. But do not take our word for it! See our independent reviews on google, facebook, sitejabber, and on Trustpilot. For all collated reviews, see here

We ensure our prices remain competitive and offer attractive discounts to make our services accessible. Our commitment to delivering plagiarism-free solutions guarantees the integrity and originality of your assignments. These attributes, combined with our dedication to personalized support and timely delivery, establish MyHomeworkHelp as the premier homework helper for all your academic needs.

K
L

### How will I receive my homework order?

You'll receive the initial version of your paper as a secure, non-editable PDF within your specified deadline. This allows you to review the content and decide if any revisions or edits are required. Our homework service will refine the homework paper based on your feedback.

Should the document meet your expectations and not require any changes, you can simply approve the order and access the editable Word .doc file.