This workout asks us to calculate the implied perpetual growth rate for the below company Interestingly it gives us the terminal value EBITDA multiple So that means we must have to calculate our terminal value using that multiple, so let's do that! I can take that multiple of 5 and I multiply that by the EBITDA in the last year of our detail cash flows That gets me a terminal value using the multiple method of 2,677.5 Now we imagine that we were also going to use the growth perpetuity method And into that growth perpetuity method, we would put a growth of 3% I want to check that 3%. I want to check, what does our multiple method imply about a perpetual growth rate Well let's use our multiple method terminal value and see what perpetual growth rate comes out of it So I take that terminal value and I multiply that by the WACC minus the free cash flow in year three I then divide all of that by the terminal value plus the free cash flow Now remember, I'm looking for some kind of growth rate close to 3% That would mean that my multiple method, terminal value here 2,677.5 Supports my growth perpetuity method Looking for a figure close to 3% If I press enter, I just need to make it into a percentage and 2.5% That's not too far off the 3%, I'm thinking that's pretty supportive of my growth perpetuity method