CFA Level 1 and 2 | Equity / Corporate Finance: Sustainable Growth Rate

Visit www.noesis.edu.sg for more info on CFA prep courses in Malaysia, Singapore, or wherever you are.
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CFA Level 1 & 2
Topic: Equity / Corporate Finance
Why do we need to study this concept?
1) It can help in estimating the stable growth rate in a Gordon growth model valuation, or
2) You are trying to calculate the terminal value of the stock in a multistage DDM, so you need the estimate the mature growth rate to plug in the Gordon growth formula.
The retention rate should be multiplied by the rate of return expected to be earned on new investment. Analysts commonly assume that the rate of return is well approximated by the return on equity.
Visit www.noesis.edu.sg for more info on CFA prep courses in Malaysia, Singapore, Vietnam, or wherever you are.
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[@perry1746]

thx! it clear my concept

[@jieying7819]

Hi thanks for your tutorial! Will you be posting any topics on quantitative method?

[@FabianMoa]

Hi Chloe. Are you referring to Level 1 or 2 Quantitative Methods? If there are specific sections, you can put down your requests and I will see if I can slot it in the video schedule. Cheers.

[@Nidatalk]

i hope you will cover all topics of level2 and level3

[@ntcuong01ct1]

Dear Friends, I have many questions about SGR (sustainable growth rate) of a company:
1/ Reasons and advantages when we apply SGR to analyze future performance?
2/ Is loan interest a factor to consider for SGR when it helps the company's value increase?.
3/ Does SGR participate directly or indirectly in any company valuation methods?