Question: In DCF valuation model, when making assumptions about the long-run constant growth rate in Terminal Period, which of the following statements is most likely TRUE?

In DCF valuation model, when making assumptions about the long-run constant growth rate in Terminal Period, which of the following statements is most likely TRUE? The long-run growth rate cannot be lower than the WACC of the firm The long-run growth rate cannot be lower than the GDP growth rate If the long-run growth rate is lower than the GDP growth rate, the firm will become a smaller part of the economy The long-run growth rate cannot be lower than the inflation rate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
