# Thread: Solution for Investments by BKM (Bodie, Kane, Marcus) ??

1. ## Solution for Investments by BKM (Bodie, Kane, Marcus) ??

Hi friends,

if anyone could please share the solution for the BKM book or ateast the answer key.

Thanks,
VC

3. ## Re: Solution for Investments by BKM (Bodie, Kane, Marcus) ??

Hey Neetu,

Many thanks.. its the thing that i was looking for....

thanks again
Varun

4. ## Re: Solution for Investments by BKM (Bodie, Kane, Marcus) ??

Welcome Varun!

If you find something better, please post it here.

5. ## Solution for Investments by BKM (Bodie, Kane, Marcus) ?

Originally Posted by neetu
Welcome Varun!

If you find something better, please post it here.
Neetu please i need this solution manual .tried ur stated link but not found. can u email me at fahad_najeeb83@yahoo.com

6. ## Doubts in Finance

I was working on valuation of high growth companies.
When I calculate the Terminal value, the formula used is:

Final Cash Flow(1+g)/(k-g)

where k = Discount Rate
and g = Long-Term Cash Flow Growth Rate

In my case, k = 8% and g is 10%, this generally doesn't happen and my valuation is -ve.

I am not sure where I am making some mistake. Any ideas???

7. ## Re: Doubts in Corporate Finance

I am not sure if your assumptions are right or not.
Isn't a growth rate of 10% too high?

I guess you can try verifying those rates... :?:

8. ## Re: Doubts in Corporate Finance

Did you try to use comparable co.s method to see how much terminal value you get?

9. ## Re: Doubts in Corporate Finance

Hi Ritesh,

The formula that you are using comes from a sum of a Geometric Progression. If you go back to the derivation of this formula, the basic assumption is k>g.

So, in your case the formula is not valid because k<g.

- Sougata

10. ## Re: Doubts in Corporate Finance

That was an interesting question and a good answer!

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