Discounting FCF as of a date + Mid Year Convention
Hello,
Let's say we assume transaction date for a deal on 10/31/17. How would you discount FCF for 2017? Would you first stub it then discount it by (12/31/17-10/31/17)/365?
If we were assuming mid year convention. Would you discount the 2017 one by [ (12/31/17-10/31/17)/365 ]/2 and then 2018 by the same discount +1?
Thank you!
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