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Dividend Growth Model
Value of stock = Last annual dividend paid x (1 + Growth rate) / Discount rate - Dividend growth rate
Doscounte rate is the required rate of return
Two-stage dividend discount model
Value of stock = PV of Dividends in period of high growth + PV of stock value as per dividend growth model
Preferred Stock Valuation
Value of stock = Dividend per share / Cost of Capital
Cost of capital is the required rate of return
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