Difference between revisions of "Dividend Growth Model"

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

Revision as of 18:52, 26 August 2020

The Dividend Growth Model (Gordon-Shapiro):

The

Where

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