Constant growth valuation formula

Assignment Help Financial Management

Reference no: EM13722327

Which of the following conditions must hold true for eth constant growth valuation formula to be useful and give meaningful results?

a. the required rate of return, rs, must be greater than the long run growth rate.

b. the company's stock cannot be a zero growth stock.

c. the company's growth rare needs to change as the company matures.

Reference no: EM13722327

Questions Cloud

What a supply chain management system could do : Explain to Ted what a supply chain management (SCM) system could do for his business and how it might improve his operations. Cover the full range of SCM functionality as it applies to Old Dominion Trail Bikes.

What personal, cultural, and spiritual values contribute : What personal, cultural, and spiritual values contribute to your worldview and philosophy of nursing? How do these values shape or influence your nursing practice?

Determine the constant-growth rate : Robert gillman, an equity research analyst at Gillman Advisors, believes in efficient markets, He has been following the mining industry for the past 10 years and needs to determine the constant-growth rate that he should use while valuing Pan Asis M..

Discuss the meaning of e-commerce from a business : Discuss the meaning of e-Commerce from a business and technical perspective and appreciate the business environments conducive to the use of successful e-Commerce applications

Constant growth valuation formula : Which of the following conditions must hold true for eth constant growth valuation formula to be useful and give meaningful results?

State highway department is planning the construction : A state highway department is planning the construction of a toll road. Construction cost will be $200M (at period=year 0). Annual maintenance is estimated to be $1M every year and forever. In addition, every 10 years in perpetuity (=forever), a majo..

The standard time for this job in minutes : A job has a normal time of 12 minutes, a performance rating of .80, and an allowance factor of 20 percent of job time. The standard time for this job in minutes is: 11.52 12 14.4 15

Required to make a processing program : Required to make a processing program that processes - float and must only print the marks unto 1 decimal digit after the decimal point.

Origins of employer-sponsored retirement plans : Discuss the origins of employer-sponsored retirement plans. Then, discuss the 2-3 most prominent trends in retirement plans including its impact for both the employee and the organization.

User Account

All Pages