Question: What are the implications if a company forecasts a constant g that exceeds its rs? Will many stocks have expected g > rs in the
What are the implications if a company forecasts a constant g that exceeds its rs? Will many stocks have expected g > rs in the short run (that is, for the next few years)? In the long run (that is, forever)?
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The model is derived mathematically and the derivation requires that r s g If g is great... View full answer
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