Intuition suggests that the length of the high-growth period when applying the variable growth model should be shorter the greater the current growth rate of the firm's cash flow.

Question

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Intuition might suggest that a firm experiencing a high current growth rate could sustain this growth for a longer period due to momentum, competitive advantages, or market conditions. The length of the high-growth period in the variable growth model is determined by factors such as industry characteristics, competition, and the firm's capacity for innovation, rather than the current growth rate alone.

Intuition Suggests That the Length of the High-Growth Period When