Chapter10: Valuing Early-stage Ventures
Section10.2: Basic Mechanics Of Valuation: Mixing Vision And Reality
Problem 4CC
Related questions
Question
What is the horizon value? Why is it also called the terminal value
or continuing value?
Expert Solution
Horizon Value:
Horizon value is the value of the expected dividend that will be received after the horizon date.
Terminal Value:
Terminal value refers to the value of the firm that grows at a constant rate for an indefinite period.
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