Ch08_HW_Templates - Ch 08 Stock Valuation To find the...

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Ch 08 Stock Valuation To find the Current Value or Price Constant Dividend Growth Model (DGM) Future Dividend Estimator Growing Perpetuity Model Dividend Amount Example: Common Stock Dividend Period Number Expected growth rate If given last paid dividend Future Period Number Future Dividend Amount g - Expected growth rate of dividends R - Required return PV - Current Price #DIV/0! If given the next expected dividend g - Expected growth rate of dividends R - Required return PV - Current Price #DIV/0! To find the Current Value or Price Constant Dividend or Zero Growth Model Perpetuity Model Example: Preferred Stock Period Cash Payment Period Rate PV - Current Price #DIV/0! Last Paid Dividend (usually D 0 ) Next Expected Dividend (usually D 1 )
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Ch 08 Stock Valuation To find the Required Return Constant Dividend Growth Model (DGM) Growing Perpetuity Model Example: Common Stock If given last paid dividend PV - Current Price g - Expected growth rate of dividends Expected Dividend Yield #DIV/0!
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