Quiz Ch 09 – T/F Nonconstant Growth Model and Discount Rate

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: As per the nonconstant growth model in the textbook, the discount rate employed to compute the present value of anticipated cash flows during the initial growth phase is identical to the discount rate used for determining the present values of cash flows during the subsequent constant growth period.

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  • Search Terms: a. b. false true according as cash constant discount discussed during expected find flows growth in initial is model nonconstant of period period. present pvs rate same subsequent textbook, the to used value
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