The H-Model
In the H-model, a stock that is expected to have a 4-year supernormal growth period would have a half-life value _H_ input to the calculation of:
Exactly!
As indicated by the "half" in half-life, the value _H_ used in the H-model is simply half of the supernormal growth period. So if this period is 4 years, the value of _H_ is 2.
No, actually.
This is the length of the supernormal growth period, but the value _H_ representing the half-life is an adjustment of this value.
No.
The half-life of the supernormal growth period isn't longer than the supernormal growth period itself.
2\.
4\.
8\.
