Mack-Cali Realty Corporation (CLI)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||-100.82|
|Present Value of Terminal Value||-3,886.28|
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Mack-Cali Realty Corporation’s cash flows after that period (if we don’t include this, we would have to assume that Mack-Cali Realty Corporation stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.