How will the terminal values in Table 8.6 change if the revenue growth rate in years 2028 and beyond is 4 percent, and the company keeps forever its abnormal returns at the same level as in fiscal 2027 (keeping all the other assumptions in the table unchanged)? If revenue growth is 3 percent in 2027 and 4 percent in 2028, why are the equity value estimates of the free cash flow model and the abnormal profit model no longer the same?

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TABLE 8.6 Valuation summary for Hennes & Mauritz using various methodologies Beginning book Value from forecast period Value beyond forecast horizon Total Value per share value 2018-2027 (terminal value) value (SEK) Equity value (SEK billions) Abnormal profit 59.7 118.7 112.8 291.1 175.90 Abnormal profit growth N.A. 249.7 41.5 291.1 175.90 Free cash flows to equity N.A. 133.6 157.5 291.1 175.90 Net operating assets value (SEK billions) Abnormal NOPAT 142.1 88.3 79.4 309.8 N.A. Abnormal NOPAT growth N.A. 277.9 32.0 309.8 N.A. Free cash flows from operations N.A. 118.7 191.2 309.8 N.A.