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The terminal value of a business that grows indefinitely is calculated as follows: 1 Cash flow from period t+1 divided by (discount rate growth rate)

The terminal value of a business that grows indefinitely is calculated as follows:

1 Cash flow from period t+1 divided by (discount rate growth rate)

2 Cash flow from period t+1 divided by (1 + discount rate)

3 Cash flow from period t divided by (discount rate growth rate)

4 None of the above

choose 1 of the 4 above

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