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A quick question about TEV
In advanced modeling session, Hamilton uses tax-effected EBIT, instead of Free cash flow to firm, to calculate terminal enterprise value (TEV=EBIT(1-tax rate)(1+g)/(WACC-g), but almost all texts use FCFF in numerator). Given EBIT not including capx or working capital, how would this argument be ju... Read More
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added 11 years ago