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All of the following are conceptual limitations or flaws of the Internal Growth Rate (IGR) based forecasting methods EXCEPT : Forecast Total Liabilities are determined

All of the following are conceptual limitations or flaws of the Internal Growth Rate (IGR) based forecasting methods EXCEPT:

Forecast Total Liabilities are determined as a Plug figure that makes the balance sheet balance.

The leverage ratio will significantly change over time.

Capital Structure weights will change significantly over time.

The IGR approach will lead to time-varying discount rates in the determination of the WACC

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