kasinkei

also, i just wonder man, do you know how to punsh in cash flows into your calculator ?
cause i solved this question in under a min…quickly write down the divds then punsh them into the calculator…
“Also it seems like a disproportionate share, 90%, is being valued towards the second stage when the growth rate is much lower. What is technically considered second stage?”
nothing disproportionate about it, the first part is the value of 8 years only
the second part is the value of 100000000000000000000000000000000000 years…
actually you would get the same result by doing the value of maybe just 100 years
cause the PV of cashflows after that becomes 0.0001….
but the point is the second part is giving the value of cashflows till infinite so nothing weird going on….