ESSEN OF INVESTMENTS CONNECT AC
ESSEN OF INVESTMENTS CONNECT AC
11th Edition
ISBN: 9781266650314
Author: Bodie
Publisher: MCG
Question
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Chapter 13, Problem 5CP
Summary Introduction

(A)

The Gordon Growth Model, also known as the dividend discount model (DDM), is a method for calculating the intrinsic value of a stock, exclusive of current market conditions. The model equates this value to the present value of a stock's future dividends.

Summary Introduction

(B)

Sustainable growth rate formula where sustainable growth rate is the maximum rate of growth that a firm can sustain without having to expand financial leverage or look for outside financing.

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Chapter 13 Solutions

ESSEN OF INVESTMENTS CONNECT AC

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