Terminal Value-related Investment Banking & Private Equity Interviews questions since 2008.

This page lists terminal value-related questions our students have encountered in Investment Banking & Private Equity Interviews since 2008.

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What are the draws backs of the perpetual growth approach to terminal value? How do you address this?

Can the terminal growth rate in a perpetual growth rate method be negative? Why or Why not?

Which method should you use to estimate terminal value in a DCF valuation?

How can you check if your terminal assumptions are reasonable?

What percentage of your total value does your terminal value usually represent?

Can your terminal growth rate be higher than the economy’s growth rate? or GDP growth rate

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– Cash Flow Questions
– Risk & Rates Questions
– Tax Questions
– Growth Questions
– Other Valuation Topics
– Terminal Value Questions
– Working Capital Questions

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