All else equal,a terminal value based on a no-growth perpetuity would be higher than a terminal value based on a perpetuity with 2 percent growth.

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Quizplus · Accepted Answer

A terminal value based on a perpetuity with 2 percent growth would be higher because the growth factor increases the value of future cash flows, making the perpetuity more valuable compared to a no-growth perpetuity.

All Else Equal,a Terminal Value Based on a No-Growth Perpetuity