Essentials of Corporate Finance
Essentials of Corporate Finance
8th Edition
ISBN: 9780078034756
Author: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 7, Problem 6CTCR
Summary Introduction

To discuss: The two components of the total return on stock per share under the dividend growth model and identify the largest component in it.

Introduction:

Dividend growth model is a method which is used to determine the intrinsic value of a stock. It is calculated by dividing the subsequent year’s dividends with the difference in the dividend growth rate and discount rate.

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Essentials of Corporate Finance

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