Equity 30: Discounted Dividend Valuation Flashcards by A Mary | Brainscape

Q

FORMULA: DDM using Gordon Growth

A

V_0 = [(D_0)(1+G)] / (r-g)

which is V_1 = D1 / (r-g)

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Q

FORMULA: DDM for perpetuity using GGM (gordon growth)

A

V_0= D/r

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