Blackstone/GSO Strategic Credit Fun... (BGB)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||2,072,365,150.52|
|Present Value of Terminal Value||78,254,203,102.50|
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Blackstone/GSO Strategic Credit Fund’s cash flows after that period (if we don’t include this, we would have to assume that Blackstone/GSO Strategic Credit Fund stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.