x

Dividend Discount Method

Dividend Discount Method

V = Intrinsic Value
D1, D2, D3 = Dividend for years 1, 2, 3 ... n
D1 = D0 (current dividend) x (1+G), D2 = D1 x (1+G) etc
G = constant growth rate for a stable period
r = Investor’s Required Return
n = Number of Years

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