Breakaway wealth had net earnings of $336,000 this past year. dividends were paid of $77,280 on the company's book equity of $2,800,000. if Safeway has 175,000 shares outstanding with a current market price of $21 per share, what is the required
The non-constant dividend growth model is a technique for evaluating the intrinsic stock value. It works on the basic assumption that dividends on stock are expected to grow at a slower pace when the investors' anticipated return on the stock remains constant. In this model growth rates are believed to change at any point in time. Different techniques available for finding the intrinsic value of the stock are the Dividend Discount Model, Gordon Model, and MM Approach.
The intrinsic value of stocks is usually ascertained with the finance or investment analysis tool which is known as the Dividend Discount Model(DDM). It values stocks at different scenarios of constant dividends, and varying dividends.
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