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Estimate the short run growth rate and the long run grow rate for the firm using historical dividend information, ROE and dividend payout ratio, and
- Estimate the short run growth rate and the long run grow rate for the firm using historical dividend information, ROE and dividend payout ratio, and GDP growth rate (Provide details on your calculation. Common practice is to estimate industry growth; for multi period DDM, you have to estimate the short run growth for the future five years and the long run growth from year 6 to infinity). Discuss the difference between the estimated short run growth rate and long run growth rate.
Stock: NRG Energy
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
