real growth rate = (1 + nominal growth rate) / (1 + Domestic inflation rate) - 1
current value of an equity using a FCFE model:
V0 = FCFE0*(1 + g) / (r - g)
r:required real return
g:real growth rate
Tuesday, May 4, 2010
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment