Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 22 October 1993
Abstract
Describes how to value an acquisition opportunity as a capital budgeting problem. Cash flows are discounted at the cost of capital and debt is deducted to value the equity capital of the target company. A key contribution of the note is the discussion of five methods for establishing a terminal value for future cash flows extending beyond the normal planning horizon.
Portuguese language
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 22 October 1993
Revision date: 9-Apr-2019
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Abstract
Describes how to value an acquisition opportunity as a capital budgeting problem. Cash flows are discounted at the cost of capital and debt is deducted to value the equity capital of the target company. A key contribution of the note is the discussion of five methods for establishing a terminal value for future cash flows extending beyond the normal planning horizon.
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Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 22 October 1993
Revision date: 9-Apr-2019