Supernormal growth is a growth rate that:

a
Applies to a single, abnormal year.

b
Is both positive and follows a year or more of negative growth.

c
Exceeds a firm's previous year's rate of growth.

d
Is generally constant for an infinite period of time.

e
Is unsustainable over the long term.

Respuesta :

Answer: (E) Is unsustainable over the long term.

Explanation:

 The Supernormal growth is is one of the type of growth model in which the stock value in an organization is expecting for the higher growth as compared to the normal growth rate and after this stage the dividend is expecting the constant growth.

 In an organization, by super-normal growth the investor is purchasing the stock and also analyzing the overall growth of the company for evaluating its projection rate.  

 According to the given question, the Supernormal growth is basically refers as the growth rate which is Unsustainable over the long term as the rate is return again to its normal level.

 Therefore,, Option (E) is correct answer.