Difference between revisions of "Dividend Growth Model"

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Dividend Growth Model
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The Dividend Growth Model (Gordon-Shapiro):
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[[Category:finance]]
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<math>{Present\ Value} =  \sum_{t=1}^{\infty}\frac{D_t}{(1+C_{equity})^t}</math>
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The <math>C_{equity} = \frac{D_1}{P_0}+g</math>
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Where
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* <math>P_0</math> is the present value
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* <math>D_1</math> is the dividend
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* <math>g</math> is the growth rate
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[[Category:mbi]]
  
 
[[Category:M12]]
 
[[Category:M12]]
  
 
[[Category:Term]]
 
[[Category:Term]]

Latest revision as of 20:13, 27 August 2020

The Dividend Growth Model (Gordon-Shapiro):

The

Where

  • is the present value
  • is the dividend
  • is the growth rate