Value drivers are variables which exert the greatest impact on firm value, often including the revenue growth rate, cost of sales as a percent of sales, S,G,&A as a percent of sales, WACC assumed during annual cash flow growth and terminal periods, and the cash flow growth rate assumed during terminal period.

Question

Value drivers are variables which exert the greatest impact on firm value, often including the revenue growth rate, cost of sales as a percent of sales, S,G,&A as a percent of sales, WACC assumed during annual cash flow growth and terminal periods, and the cash flow growth rate assumed during terminal  period.

Quizplus · Accepted Answer

This statement accurately describes what value drivers are and their impact on firm value.

Value Drivers Are Variables Which Exert the Greatest Impact on Firm