Constant Growth Dividend Discount Model
Dividend discount model is defined as a method via which one can compute the price of a equity by discounting the present value of the dividend which is compensated by the company to its shareholders. The formula for computing the value of a stock via this method is
Value of a stock = Dividend compensated by the company need rate of return - Dividend growth rate
The computing the value of a stock is called fixed growth model that it can be employed only when growth rate is presumed to be fixed. There are many editions of dividend discount model and thus for measuring different companies different variant can be used. On the other hand, this method cannot be employed for measuring those companies which are just entering into the business and pay zero dividends.
Constant Growth Dividend Discount Model - Online Tutoring - Assignment Assistance
We at Expertsmind.com offer Constant Growth Dividend Discount Model homework help, Constant Growth Dividend Discount Model free tutorials and assignment assistance and Constant Growth Dividend Discount Model based question's answers by help of qualified and experienced finance tutors. We make easy Constant Growth Dividend Discount Model based assignments and homework for you with conceptual Dividend Policy theory and by solving each kind of Dividend Policy problems with a tricky approach.