Practical Approach for Incorporating the Notion of Growth in the Evaluation of the Cost of Capital

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American Society of Appraisers Business Valuation Review™
Winter 2006 Volume 25, Issue 4 pp. 149-152
Robert Schulz

Summary

A practical approach is given for evaluating the growth rate “g” used in business evaluations. The method uses a two-stage model and is based on the determination of an effective growth rate using company projections usually found in the business plan and the expected long-term growth of the economy.
Practical Approach for Incorporating the Notion of Growth in the Evaluation of the Cost of Capital
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