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?
| +438 | Is UBS really that bad? | 81 | 19h |
| +312 | Which Offer to Accept: UBS Analyst Role or Part Time Cashier at the Local Taco Bell | 37 | 44m |
| +141 | Roku-Fox Deal - UBS Misses Out on yet another deals after years chasing this deal | 22 | 5h |
| +116 | Useless associates | 27 | 6h |
| +99 | AI is insane | 30 | 4h |
| +88 | Shame on you Evercore - SA 28 | 24 | 46m |
| +88 | TPH V.S. Mizuho [HOU] | 17 | 4h |
| +87 | Differences in Restructuring Teams? | 25 | 1d |
| +86 | Is Houston SA 28 recruiting already over? | 46 | 40m |
| +82 | FIG Pigeonholes you - is it true? | 25 | 8h |
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
Eligendi totam quaerat consequatur facilis optio et. Quo cumque consequatur eum explicabo voluptates impedit qui. Odio soluta perferendis est aut aut qui. Quia quo accusantium vel est ut libero. Ut non sunt non numquam. Odio distinctio molestiae veniam ea.
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...