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The Differential Growth Model, Additional Applications

CORPFN-XMBMI9

Which of the following is/are possible additional applications of the differential growth model (using additional assumptions and mathematical applications)? Select ALL that apply.

A

Valuation of a company over its entire life cycle.

B

Determining the value of a stock based upon performance of high initial growth, then a change to perpetual, stable growth (Two-Stage Model).

C

Determining the value of a stock based upon performance of high initial growth, declining (contracting) growth, then a change to perpetual, stable growth (Three-Stage Model).

D

Determining the value of a market or business sector via a stock index based upon performance of high initial growth, then a change to perpetual, stable growth.