Question
in calculating a terminal value using the perpetuity growth rate method, you initially assume that the required rate of return (r) is 10.0% and the
in calculating a terminal value using the perpetuity growth rate method, you initially assume that the required rate of return (r) is 10.0% and the perpetuity growth rate (g) assumption is 4.0%. After further research, you decide to lower the assumed long-term growth rate to 3.5% and the discount rate to 9.5%. What will happen to your DCF terminal value?
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
4th edition
978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730
