A firm currently has a growth rate for residual earnings of 16 percent, but investors agree that
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A firm currently has a growth rate for residual earnings of 16 percent, but investors agree that the very long-term growth rate should be the GDP growth rate of 4 percent. What determines the speed by which the 16 percent rate fades to the 4 percent rate over time?
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The degree of competition and the ability of the firm to protect itsel...View the full answer
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Related Book For 
Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
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