equity valuation formulas william l silber and jessica wachter i the dividend discount model suppose a stock with price p0 pays dividend d1 one year from now d2 two years ...
Filetype PDF | Posted on 20 Aug 2022 | 3 years ago
The words contained in this file might help you see if this file matches what you are looking for:
...Equity valuation formulas william l silber and jessica wachter i the dividend discount model suppose a stock with price p pays d one year from now two years so on for rest of time is then equal to discounted value future dividends k factor firm s cost capital given by capm required rate return holding r f m sometimes called capitalization ii some simplifications extensions we can simplify equation assuming that company same expected forever companies this not bad approximation simply perpetuity cash payment using formula perpetuities be related earnings ratio because are paid out let b denote plowback e fraction plowed back into as substituting expression above have which implies simple inversely lower higher note when becomes more special case below iii growth simplified does capture feature important many grow over need modify account assumption at constant g means forth substitute these get factoring produces it turns term in brackets has finite sum if kg gives according iv where co...