Investments, 11th Edition (exclude Access Card)
Investments, 11th Edition (exclude Access Card)
11th Edition
ISBN: 9781260201543
Author: Zvi Bodie Professor; Alex Kane; Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 18, Problem 2PS
Summary Introduction

To describe: The circumstances in which the applicability of multistage dividend discount model is more advisable than the constant growth model.yyyy13

Introduction:

Multistage dividend discount model: This model is used to calculate the intrinsic value of a stock at different growth phases of the stock. The constant growth model, or Gordon Growth Model, is a way of valuing stock. It assumes that a company's dividends are going to continue to rise at a constant growth rate indefinitely.

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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY