Chapter 7 - DDM

Chapter 7 - DDM - Valuing Common Stocks(DDM Dividend...

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Valuing Common Stocks (DDM) ± Dividend Discount Model (DDM with H - Time horizon) ± The DDM with No Growth ± The Constant-Growth DDM ± Nonconstant Growth ± Step 1: Value dividends over the period of rapid growth ± Step 2: Estimate stock price at the horizon year, when growth should have settled down ± Step 3: Calculate the PV of the stock by summing the PV of dividend up to the horizon year and the PV of the
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