Hi guys,
Topic Test 9 - Equity section Question 4
The formula V0 = B0 + ((ROE-r)°B0)/(r-g)
Why can we use it as it clearly states in the instructions that the company will have three different growth rate levels 19-10-5 for the next six years?
Or you mean that we can use this formula (even if there are different growth rates) taking only the average LT growth rate?