Assume that after applying the free cash flow valuation model to the data for a given firm you recognize that the constant annual growth rate for the period following the initial high-growth period is too high What effect would be lowering this rate have on the valuation model?

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Investing decisions can be made based on simple analysis such as finding a company you like with a product you think will be in demand The decision might not be based on scouring financial statements ... View the full answer