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The cost of capital We now have taken was five per cent. After assuming the expense of money of five %, We have now regarded as the perpetuity growth model during which We've got assumed that the money stream is going to be increasing Using the continuous development rate of all over 2 p.c.
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Here is the exact same methodology employed by individuals who obtain property; they purchase the properties at good market place worth and receives a commission for them at an increased rate as a consequence of inflation.
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