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business valuations

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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March 9, 2022 at 10:10 am #650432
josephgontse25
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hello
how do I find the value of “g” in the equation 65(1+g)^2=78 for business valuations
March 9, 2022 at 3:17 pm #650480
John Moffat
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Divide both sides by 65, which gives (1 + g)^2 = 1.2
Take the square root of both sides, which gives 1 + g = 1.0954
Subtract 1 from both sides, which gives g = 0.0954 (or, of course, 9.54%)
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