I'm trying to figure out the best discounting approach for Rackspace.
I attempted to use the model spreadsheet (the one that helps determine the correct approach to use), but I'm uncertain that I'm getting the right answer. It's stating to use the following methodology:
Model - Discounted CF
Level of Earnings - Current
Cashflows that should be discounted - Dividend (equity)
Length of period - 5 to 10 years
Growth pattern - Three stage
My only uncertainty is how the cashflows should be discounted, since the firm doesn't pay out any dividends. Can anyone provide insight? Thanks!

Hey! We 've verified this expert answer for you, click below to unlock the details :)

I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!

Looking for something else?

Not the answer you are looking for? Search for more explanations.