1. the growth factor can be treated as a growing perpetuity for the book value increament when you multiple B_0 to the G. PV(growth value)=B_0*g/(r-g)=B_0*G. Therefore, people call this part growth factor.

2. degree of operating leverage, DOL = (P-V)*X/(((P-V)*X)-FC). High level fixed cost compare to industry means the variable cost portion in the company is relatively small and relatively weak, therefore, sales decrease could have the potential to seriously decrease the DOL which finally result in a lower ROE. Compared to industry peers, this company would have weaker bargaining power over its customers.

where P means price

         V means average variable cost

         X means number of goods sold

         FC means fixed cost

谢谢回复。。。

1、不过我看教材上G的推导是完全的数学过程，从P0/E1=(1-b)/r-g推导至其=1/r+FF*g/r-g，所以就把这个部分叫做成长因子。但下面教材上又解释G是BV的折现因子。可是这中间的逻辑过程或者说是推导过程我很不理解。

2、就是porter's five forces呀，因为以前大学专业课上学过所以就习惯性中文了。