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Present Value of Stock - Constant Growth

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Jul 16, 2014, 2:04:08 PM
`P_0 = "Estimated dividends for next period" /( "Required rate of return" - "Growth rate" )`
` "Estimated dividends for next period" ("Div"_1)`
`"Required rate of return" (r)`
`"Growth rate" (g)`
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Finance: Stocks/Bonds
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0dbb92e1-0cf2-11e4-b7aa-bc764e2038f2

The Present Value of a Stock with a constant growth is calculated by the projected dividends to be paid divided by the difference between the required rate of return and the growth rate.It is used in the dividend discount model on stocks that are assumed will grow perpetually.
This equation, Present Value of Stock - Constant Growth, is used in 3 pages
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