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3 Cards in this Set
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- Back
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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 |
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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 |
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Preferred Stock Valuation |
Value of stock = Dividend per share / Cost of Capital |
Cost of capital is the required rate of return |
