In Merger Analysis, a Terminal Value Represents

question 117

Multiple Choice

In merger analysis, a terminal value represents:

• A)the estimated value of the target company exactly three years in the future.
• B)the book value of the target's assets at the end of the period of cash flow estimation.
• C)the target's value after a period of detailed cash flow estimation, generally assuming it will grow at a constant rate indefinitely.
• D)the net income of the target company during its last full year prior to acquisition.
• E)None of the above describes the terminal value concept.

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Definitions:

Schedule Variance

A project management metric that measures the difference between the planned and actual progress of a project.

Earned Value

A project management technique that measures project performance and progress in an objective manner.

Planned Value

In project management, it refers to the estimated monetary value of the work planned to be completed at a certain point in the project's timeline.

Earned Value Management

A project management technique that integrates scope, cost, and schedule to assess project performance and progress.