One of the reasons the discounted cash flow approach assuming multistage growth is used by analysts to value companies is the difficulty companies have maintaining an extremely high growth rate for long periods.

Question

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The multistage growth model in discounted cash flow (DCF) analysis accounts for the fact that companies often cannot sustain high growth rates indefinitely, transitioning to lower, stable growth rates over time.

One of the Reasons the Discounted Cash Flow Approach Assuming