Unformatted text preview: value. Gordon model Vo = D1/(kcs – g) where D1 = Do(1+g) Two stage growth model: Stage 1? Individual growth rates discounted back. Last stage – Gordon model. Known as terminal value. If dividends aren’t available – as in Google box, go with FCF instead. Can solve for any of the missing variables. Citigroup case at the back of the chapter....
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 Winter '11
 JimBrau
 Finance, Debt, Gordon model Vo

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