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How is the supernormal growth pattern likely to vary from normal constant growth pattern in financial management?
Wiki User
∙ 16y ago
Normal, or constant, growth occurs when a firm's earnings and dividends grow at some constant rate forever. One category of non-constant growth stock is a "supernormal" growth stock which has one or more years of growth above that of the economy as a whole, but at some point the growth rate will fall to the "normal" rate. This occurs, generally, as part of a firm's normal life cycle. A zero growth stock has constant earnings and dividends; thus, the expected dividend payment is fixed, just as a bond's coupon payment. Since the company is presumed to continue operations indefinitely, the dividend stream is perpetuity. Perpetuity is a security on which the principal never has to be repaid.
Wiki User
∙ 16y ago
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What is a geometric rule for pattern?
Not sure about this question. But, a geometric sequence is a sequence of numbers such that the ratio of any two consecutive numbers is a constant, known as the "common ratio". A geometric sequence consists of a set of numbers of the form a, ar, ar2, ar3, ... arn, ... where r is the common ratio.
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