The Dividend Growth Model (Gordon-Shapiro):

$\Large	\displaystyle {Present\ Value} =  \sum_{t=1}^{\infty}\frac{D_t}{(1+C_{equity})^t}$

The $\Large C_{equity} = \frac{D_1}{P_0}+g$

Where
* $\Large P_0$ is the present value
* $\Large D_1$ is the dividend
* $\Large g$ is the growth rate

bag
finance_public
created
Fri, 04 Feb 2011 14:38:27 GMT
creator
dirkjan
modified
Fri, 04 Feb 2011 14:38:27 GMT
modifier
dirkjan
tags
M12
Term
creator
dirkjan