Required rate of return=growth rate? CBOK Reading 30 practise question 41 (2018 edition)
For the question on Venus company, in particular question 41 of CBOK
Exhibit 2, scenario 2 shows the growth rate of dividends; but the question does not explicitly state the required rate of return that would be required to calculate the terminal value. In the answer, the terminal value is calculated using 8% which is the beginning growth rate.
Is the beginning growth rate = to the required rate of return?
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