Can the variable growth rate model be used to value a firm that has a negative growth

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Can the variable growth rate model be used to value a firm that has a negative growth rate in Stage 1 and a stable and positive growth rate in Stage 2? Explain.

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Question Posted: Sep 23, 2014 10:35 AM

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Can the variable growth rate model be used to value a firm that has a negative growth

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In this case the firm would be contracting over a short period and ...View the full answer

Finance Applications and Theory

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