Terminal Value

Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Corporate Backed Trust Certificates, Goldman Sachs Capital I Securities-Backed Series 2004-6 04-6 A1 3.50’s cash flows after that period (if we don’t include this, we would have to assume that Corporate Backed Trust Certificates, Goldman Sachs Capital I Securities-Backed Series 2004-6 04-6 A1 3.50 stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.