Re:FTC sues to block Nvidia-Arm merger
by ttt333 on Friday December 03, 2021 @10:27AM
(#29431082)
The terminal point doesn't necessarily have to apply for the company, or even the financial asset based on the company.
There is an simple model in finance [1] that collapses an infinitely growing stream of cash flows into a finite present value. So to your example of coca-cola, even if you assume they will exist and distribute growing profits forever, you can still find a terminal value.
There is an simple model in finance [1] that collapses an infinitely growing stream of cash flows into a finite present value. So to your example of coca-cola, even if you assume they will exist and distribute growing profits forever, you can still find a terminal value.
[1]: https://corporatefinanceinstitute.com/resources/knowledge/va...