Industry we work together to reach a common goal to

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Unformatted text preview: bond coupon income  price change Investment Expected return on stocks (14) Expected return r dividend  capital gain investment Div1  P1  P0 P0 Stock price Please click the advert (15) P0 Div1  P1 1 r The financial industry needs a strong software platform That’s why we need you SimCorp is a leading provider of software solutions for the financial industry. We work together to reach a common goal: to help our clients succeed by providing a strong, scalable IT platform that enables growth, while mitigating risk and reducing cost. At SimCorp, we value commitment and enable you to make the most of your ambitions and potential. Are you among the best qualified in finance, economics, IT or mathematics? Find your next challenge at www.simcorp.com/careers www.simcorp.com MITIGATE RISK REDUCE COST ENABLE GROWTH Download free ebooks at bookboon.com 90 Corporate Finance Overview of formulas Discounted dividend model: f (16) P0 Divt ¦ 1  r t t1 Discounted dividend growth model (17) P0 Div1 rg Stock price of preferred share paying a constant dividend (18) P0 Div r Stock price with no growth (i.e. all earnings are paid out to shareholders as dividends) (19) P0 Div1 r EPS1 r Expected growth calculation (20) g = return on equity · plough back ratio Stock price with growth...
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