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Growth Rate Can’t Be Higher Than The Discount Rate?
Growth rates can exceed the cost of capital for very short periods of time, but we’re talking about a growth rate in PERPETUITY while calculating DCF here. Any company whose growth rate exceeds the required rate of return would be a riskless arbitrage and attract all the money in the world to invest in it. The company would eventually become the entire economy with every human being on earth working for it!
Hence from a simple mathematical perspective, the growth rate can’t be higher than the discount rate because it would give you a negative terminal value.
You may however play around with the assumptions in the DCF calculator with ease.
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