ESTIMATING THE INTERNAL RATE OF RETURN FROM PUBLISHED FINANCIAL STATEMENTS: A COMMENT |
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| Authors: | M Jegers |
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| Institution: | The author is NFWO-Researcher, Chair of Management, at the State University Centre, Antwerp. Belgium. He wishes to acknowledge Professor T. Salmi's stimulating reaction to an earlier version of this comment. The usual disclaimer applies. |
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| Abstract: | In a recent issue of this journal T. Salmi attempted to estimate the internal rate of return from published financial statements. Two reasons lead to the conclu- sions that his approach is partly in error. The first is a technical one. Also it has been proved that his objective, estimating the IRR in the case that it is approximately equal to the growth rate, can be reached in a much simpler way. |
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