can we interuse them? In Schweser practice book 1, Mock 1, 35: they use divident growth rate 6% as earnings growth rate.......作者: tobeornottobe 时间: 2011-7-13 13:33
They are not the same...but if they don't say specifically, assume they are the same.作者: luda002 时间: 2011-7-13 13:33
If it is a perpetual stable growth rate, then they should definitely be the same.作者: huangxiaoxie 时间: 2011-7-13 13:33
Be careful of this come exam day... just because a "growth rate" is given in a vignette, that does not mean it's the "sustainable growth rate". Make sure if at all possible to calculate the sustainable growth rate yourself.
CFAI has pulled this trickery in the past.作者: troymo 时间: 2011-7-13 13:33
Dreary -
Last year on the sample they had a question which gave you a growth rate but also enough information to compute 'g'. If you used the growth rate given it was wrong because this was not the "sustainable" growth rate.作者: jacksparrow 时间: 2011-7-13 13:33
thanks for the tip...I know they can do all kinds of nasty things on us.作者: random_walker47 时间: 2011-7-13 13:33
dividend growth rate and earnings growth rate are the same if the dividend payout ratio (or retention ratio) is constant. Generally, if you are using g = ROE*b, you are going to assume that b is constant, hence payouts are constant, hence dividend growth = earnings growth.
