Difference between revisions of "Terminal value"

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(Related coursework)
(Definitions)
 
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==Definitions==
 
==Definitions==
 
According to [[Organizational Behavior by Robbins and Judge (17th edition)]],
 
According to [[Organizational Behavior by Robbins and Judge (17th edition)]],
::[[Terminal value]]. A desirable end-state of existence; the goal a person would like to achieve during his or her lifetime.
+
:[[Terminal value]]. A desirable end-state of existence; the goal a person would like to achieve during his or her lifetime.
 +
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 +
:[[Terminal value]]. Value of operations at the end of the explicit forecast period; equal to the present value of all free cash flows beyond the forecast period, discounted back to the end of the forecast period at the weighted average cost of capital.
  
 
==Related concepts==
 
==Related concepts==

Latest revision as of 13:49, 28 October 2019

Terminal value is a desirable end-state of existence; the goal a person would like to achieve during his or her lifetime.


Definitions

According to Organizational Behavior by Robbins and Judge (17th edition),

Terminal value. A desirable end-state of existence; the goal a person would like to achieve during his or her lifetime.

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Terminal value. Value of operations at the end of the explicit forecast period; equal to the present value of all free cash flows beyond the forecast period, discounted back to the end of the forecast period at the weighted average cost of capital.

Related concepts

Related lectures