2012 Mock - Afternoon-Question 32

[nsbharath]

This question is about using CCM method, which is fine. In the answers they have shown that they used a growth rate of 5%. I could not find any reference to this growth rate anywhere in the question. Anybody has any idea about how this number was arrived at?

 

[tchoupimix]

Exhibit 3
Other Data and Inputs
Long-term growth rate beyond FY2012 : 5%

 

[nsbharath]

Thx, though I did not make the link when i first saw it, but given that CCM must have g, we should probably infer it