radomes.openskiesproject.org
Isaia8sminem
Isaia8sminem Isaia8sminem
  • 15-08-2016
  • Business
Answered

What if my growth rate (NOPLAT and free cash flow), g, is greater than WACC when valuing a company? Assume that cash flow is positive. Or worse, assume it is negative.

Verified Answer :

andriansp andriansp
  • 18-08-2016

Well, it's really hard to say.

But let say that if your growth rate is greater that your WAAC at company valuation, it could indicate that you are increasing the dividend at the faster rate than the growth of the company, which could potentially make you go bankrupt

hope this helps

Answer Link

Related Questions

how is 17 26 different from 36 53 Explain this is regrouping lesson
whats is four words thats describe baron fried rich von steuben
How did the Greek colonies help industry to grow
this is the first cell of a new individual formed by the fusion of a sperm and egg at fertilization
A theme is best described as a a moral lesson presented in a work of literature b the central idea or insight about life revealed in a literary work c the subje
What was the name of the final Nazi offensive battle of World War II a the Battle of Berlin b the Battle of Normandy c the Battle for Paris d the Battle of the
Which of the following events or sentiments was NOT influenced by nationalism
Do you agree or disagree with the following idea With the help of technology students will benefit greatly from studying by themselves at home
18 of what number is 43
wexlers manufactures widgets