3.4 Recalculate the equity premium with the data of Problem 3.3 allowing for gradual convergence toward trend
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3.4 Recalculate the equity premium with the data of Problem 3.3 allowing for gradual convergence toward trend values of growth and payout as done in Section 3.2.5. (You can use the spreadsheet Equity Premium Calculator.) Interpret the difference of your result with respect to your answer to Problem 3.3.
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ISBN: 9780470128893
2nd Edition
Authors: Enrique R. Arzac
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