See Also: Tight money or dear money(finance)
Terminal(medicine)
terminal bar(medicine)
terminal web(medicine)
air terminal(dictionary)
terminal(dictionary)
NH2-terminal(medicine)
Terminal value(money)
Terminal value(finance)
terminal deletion(medicine)

Terminal value (money)


Definition: [crh] The value of a bond at maturity, typically its par value, or the value of an asset (or Definition: an entire firm) on some specified future valuation date. Usually, a perpetuity formula is used. For example, suppose we forecast cash flows throuDefinition: gh year 10. We make an assumption that year 11 and beyond will be no growth (except for inflation). If the cash flow forecast for year 11 is 100, the Definition: ">firm's discount rate is 12%, and inflation is expected to be 2%, we use the formula V10 = CF11/(disc rate-inflation). Hence, the value is 100/(0.12 - 0.02) that is 1,000. Definition: This cash flow needs to be brought back to present value using the formula 1000/(1.12)10, which is 321.97. Note the importance of the inflation assumption.Definition: