TT Bryan Yee - Single Stage Residual income model

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?

I am having the same issue. If someone has any input, please share.