PPT Slide

If we have supernormal growth of 30% for 3 years, then a long-run constant g = 6%, what is P0?

^

0 ks=16% 1 2 3 4

g = 30% g = 30% g = 30% g = 6%

D0 = 2.00 2.60 3.38 4.394 4.658

2.241

2.512

2.815 P3 = = 46.58

29.842

37.41 = P0

4.658

0.10

Previous slide

Next slide

Back to first slide

View graphic version