Pg 68 schwzer book see Q-12 for solving it they r taking RFR instead of growth rate for terminal value w/h i can not get why they took it where as there is a same sort of Q in EOC CFA-book pg 129 Q-12 they r taking growth rate in denominator for calculating terminal value as we usually do. now can u tell me what is the difference b/w these two Qs. I m asking this b/c we’have been doing DDM Q also in equity
Haven’t looked at the question in the book, and I can’t really understand what you’re asking.
But are you sure the RFR is not the capitalization rate which implicitly incorporates the growth rate?
theres a mistake. check the errata