calculate the price with the constant dividend growth model, check these out | How do you calculate share price using dividend growth model?
The formula is P = D/(r-g), where P is the current price, D is the next dividend the company is to pay, g is the expected growth rate in the dividend and r is what’s called the required rate of return for the company.
How do you calculate share price using dividend growth model? What Is the DDM Formula?
Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)Rate of Return = (Dividend Payment / Stock Price) + Dividend Growth Rate.
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