Gordon's Dividend Capitalization Model
A model for determining the intrinsic value of a stock, established on a future series of dividends that grow at a constant rate. Provided a dividend per share that is payable in one year, and the assumption that the dividend grows at a constant rate in perpetuity, the model figures out for the present value of the infinite series of future dividends.
Where:
D = anticipated dividend per share one year from now
k = required rate of return for equity investor
G = Growth rate in dividends (in perpetuity)
ExpertsMind.com - Gordon Dividend Capitalization Model Assignment Help, Gordon Dividend Capitalization Model Homework Help, Gordon Dividend Capitalization Model Assignment Tutors, Gordon Dividend Capitalization Model Solutions, Gordon Dividend Capitalization Model Answers, Dividend Decisions Assignment Tutors