Chapter 4 - Horizon Value

Brian Viscusi ( (no email) )
Fri, 24 Jul 1998 09:14:41 PDT

In the section on estimating horizon value(Section 4.5, pgs. 76-77),
they use the free cash flow and earnings in year 7 to calculate the
present value, but then use the asset value from year 6 to calculate the
present value using the market-book ratio.

Can anyone explain the reasoning behind this or is it possibly a
mistake?

Thanks for the help.

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