NO.PZ201710200100000409
问题如下：
9. The persistence factor suggested by Beckworth will lead to a multistage value estimate of TTCI’s shares that is:
选项：
A. less than Castovan’s multistage value estimate.
B. equal to Castovan’s multistage value estimate.
C. greater than Castovan’s multistage value estimate.
解释：
A is correct.
In Castovan’s multistage valuation, she assumes that TTCI’s residual income will remain constant in perpetuity after Year 3. This perpetuity assumption implies a persistence factor of 1 in the calculation of the terminal value. A persistence factor of 0.10 indicates that TTCI’s residual income is forecasted to decline at an average rate of 90% per year. This assumption would lead to a lower valuation than Castovan’s multistage value estimate, which assumes that residual income will remain constant in perpetuity after Year 3.
请采用公式解析一下这个情况
