Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
Question
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Chapter 9, Problem 12P
Summary Introduction

To determine: The value of the share using the dividend discounting model

Introduction:

Dividend discounted model: It is a method of calculating the company’s stock value; the expected value is the sum of future dividend payment that is discounted back to their present value. In other words, the stock value is based on the sum of the present value of the future dividend.

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