Kwaza asks Khan to investigate the most appropriate models for valuing utility companies. She tells Khan about the following points mentioned in various research reports on the utilities sector.
Report 1: A resurgence in domestic manufacturing activity will generate long- term growth in earnings and dividends that exceeds the cost of equity.
Report 2: Share repurchases are expected to increase. The report expresses confidence in the forecasts regarding the magnitude and timing of these repurchases.
Report 3: The report forecasts earnings growth of 4.5%. The key growth drivers are increases in population and business creation associated with stable GDP growth of 2.75%.
- Which sector report best describes a situation in which the Gordon growth model could be used to value utility stocks?
- A Report 1
- B Report 2
- C Report 3
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提问： 看了视频讲解，答案是B，我不明白为何report2可以用GGM，report2 里面没有提到g是个常数（增长率稳定）。
report 3说 4.5%的驱动因素是GDP growth of 2.75%. 。 既然驱动因素增长率稳定，为何不能说这个forecasts earnings growth of 4.5%.是稳定的？
