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1. Need realistic projected financial statements over at least one business cycle (7 to 10 years) or until cash flows are "normalized"
2. Sales growth rate, margin, investment in working capital, capital expenditures, and terminal value assumptions along with discount rate assumptions are key to the valuation
3. Free cash flows represent a significant portion of value and are highly sensitive to valuation assumptions
4. None of the above

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9219543

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