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View Full Version : 8V -- SN 110 (equity/duration paradox)


Axsuetarian
06-24-2002, 08:25 AM
Is it sufficient to say that the assumption of constant growth gives the DDM and FFM models the same result (just arrived at differently)

Put another way, is it true that

FV = FF*G*E becomes (r-k)/(rk) * g/(k-g) * E simply with the assumption of constant growth

Thanks in advance,