Calculating constant growth rate model
Calculate the value of a stock that paid a $10 dividend last year, if dividends are expected to grow forever at 6% and the required rate of return on equity is 8%. Because of the complexity of this formula and the numerous growth rates it can The number of years for which the initial growth rate remains constant is Dividend Growth Model formula is expressed as P = D1 / (k-g). The premise is that the firm will pay future dividends that will grow at a constant rate. In this paper