Analysts normally must calculate a terminal value of a firm when preparing a discounted cash flow valuation. There are three ways to prepare this estimate, which include (1) assuming a liquidation...

Analysts normally must calculate a terminal value of a firm when preparing a discounted cash flow valuation. There are three ways to prepare this estimate, which include (1) assuming a liquidation value of the firm’s assets in the terminal year, (2) applying a multiple to earnings, revenues or book value, and (3) assuming the free cash flows will grow at a constant rate forever (a stable growth rate). Using each of these methods, what is your estimate of the terminal value for the company that you elected to study?