Is it always true that r>g? (DDM related questions)
In DDM model, we always assume that r>g. (If not, it make no sense mathematically.) In real business, except some extreme cases, is it always true that r>g?
In DDM model, we always assume that r>g. (If not, it make no sense mathematically.) In real business, except some extreme cases, is it always true that r>g?
| +161 | As Lehman people reconvene at UBS, Barclays needs to hire (2023) | 23 | 1d |
| +149 | Worlds Worst MDs Competition (2026 Edition) | 20 | 7h |
| +136 | Is pay at BofA really that bad? | 65 | 3h |
| +90 | Day at Macquarie | 12 | 2d |
| +89 | Lindsay Clancy - Thoughts from A2 | 21 | 2h |
| +67 | Who Killed Wall Street | 25 | 2h |
| +51 | How bad did I mess up | 10 | 2d |
| +35 | Misrepresented Houston IB | 14 | 2d |
| +33 | EB (EVR/CVP/LAZ) vs MBB (Bain/BCG) | 13 | 3h |
| +29 | No BB RO 2026 | 10 | 4d |
Career Resources
You use this for a perpetual growth risk should therefore always cost more than perpetual growth if not your growth assumptions are probably incorrect or the company hasn't reached a mature state of growth.
Thanks a lot!
If you project 8%+ growth until.. forever, better check the size of your company versus the world economy in 100 years. Expand the forecast in order for the growth to come down and reach a steady state from where you can take a terminal value.
Thanks, that really helps!
haha unless you work at Lazzard
Eum iure sint voluptatem sed ea. Dolorum necessitatibus possimus ut a dolore omnis eos. Quia quis sequi quibusdam adipisci sit ea dicta ut. Reprehenderit nostrum aut adipisci iusto quia. Id culpa nam et. Occaecati voluptas non consequuntur est quo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...