Login to manage your account

Please enter a valid email address.
Forgot Password?
Please enter a valid password.
OR

Don't have an account yet? Sign up

What does the terminal value typically represent in a DCF?

  1. A The majority of the total valuation, covering cash flows beyond the forecast period
  2. B A small residual amount
  3. C The liquidation value only
  4. D The initial investment
Answer

The majority of the total valuation, covering cash flows beyond the forecast period

Because it dominates the result, the perpetuity growth rate or exit multiple assumption deserves the most scrutiny in the model.

All Investment Banking MCQs

Login to manage your account

Please enter a valid email address.
Forgot Password?
Please enter a valid password.
OR

Don't have an account yet? Sign up as