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Commerce · Q433

Financial Management

Graduate and Post Graduate · Commerce · question 433

Q433

Historical growth rates, analysis forecasts and retention growth model are approaches to estimate

A.
present value of gain
B.
growth rate
Answer
C.
growth gain
D.
discounted gain

Answer: Option B

Solution

Answer: Option B
Solution:
Historical growth rates, analysis forecasts and retention growth model are approaches to estimate growth rate. The term “historical growth” refers to the annualized rate at which a company has grown its earnings per share over a given period of time.