Under the competitive equilibrium assumption, the terminal value in the discounted abnormal profit growth model is the

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Under the competitive equilibrium assumption, the terminal value in the discounted abnormal profit growth model is the present value of abnormal profit in the terminal year times minus one, capitalized at the cost of equity.

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Business Analysis And Valuation

ISBN: 978-1473758421

5th Edition

Authors: Erik Peek, Paul Healy, Krishna Palepu

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Question Posted: Apr 19, 2024 02:01 AM

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Under the competitive equilibrium assumption, the terminal value in the discounted abnormal profit growth model is the

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The discounted abnormal profit growth model is a valuation method that estimates the present value of a companys future abnormal profits which are the ...View the full answer

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