PIMCO Corporate & Income Opportunit... (PTY)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||131.27|
|Present Value of Terminal Value||3,195.15|
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of PIMCO Corporate & Income Opportunity Fund’s cash flows after that period (if we don’t include this, we would have to assume that PIMCO Corporate & Income Opportunity Fund stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.