n NISM Certifications
X NISM Series X
Medium

The terminal value of a company refers to the continuing value beyond the discrete forecast period, capturing the perpetual cash flows that accrue after the forecast horizon. This value is essential in discounted cash flow analysis to estimate the company's worth beyond the explicit forecast period.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The acquisition value to an acquirer

  2. B

    The value at the end of its life

  3. C

    The negotiated value with the investor

  4. The continuing value beyond the discrete period

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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