Explain the concept of terminal growth rate and discuss why it is impossible for firms with good management to have a terminal growth rate higher than industry or market growth rate forever.
Explain the concept of terminal growth rate and discuss why it is impossible for firms with good management to have a terminal growth rate higher than industry or market growth rate forever.
Chapter9: Projecting Financial Statements
Section: Chapter Questions
Problem 2DQ
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Explain the concept of terminal growth rate and discuss why it is impossible for firms with good management to have a terminal growth rate higher than industry or market growth rate forever.
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