Corporate Finance Flashcards
1
Q
What Determines PVGO?
A
2
Q
Formula for estimating TV and CFs with Terminal Growth Method
A
3
Q
The price of a stock can be decomposed into two components
A
4
Q
Assume that the firm follows a policy of reinvesting a fraction k of its yearly earnings in new projects. k is called…
A
the plowback ratio and (= reinvestment rate or retention rate) and 1 - k is the payout ratio
5
Q
A
