Question: Using the Gordon model, what would be the terminal value if the growth rate is 3% and the discount rate is 8.80% ? Method #1

Using the Gordon model, what would be the terminal value if the growth rate is 3% and the discount rate is 8.80% ?

Method #1 - DCF Using the Gordon Growth Model
Terminal Value Multiples from the Gordon Model (DCF)
Growth Rates
Disc.Rate 0% 1% 2% 3%
8.30% 12.05 13.84 16.19 19.43
8.80% 11.36 12.95 15.00 17.76
9.30% 10.75 12.17 13.97 16.35
9.80% 10.20 11.48 13.08 15.15

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