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John Moffat.
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dennissherpa101
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sir the kaplan book has perpituity with growth how is that different from inflation. mathematically?
John Moffat
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When there is growth we either discount at the real cost of capital (as opposed to the nominal/actual cost of capital) or we can use the dividend valuation formula (which is effectively doing the same thing – it deals with any growing perpetuity (not just dividend streams).
I illustrate both approaches in my free lectures.
dennissherpa101
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