BlackRock Multi-Sector Income Trust (BIT)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||192,010.62|
|Present Value of Terminal Value||21,462,859.44|
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of BlackRock Multi-Sector Income Trust’s cash flows after that period (if we don’t include this, we would have to assume that BlackRock Multi-Sector Income Trust stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.