Valuing Common Stocks

Dividend Discount Model - Computation of today's stock price which states that share value equals the present value of all expected future dividends.

70

Valuing Common Stocks

Dividend Discount Model - Computation of today's stock price which states that share value equals the present value of all expected future dividends.

0 (1 + r)1 (1 + r)2 (1 + r)H

H - Time horizon for your investment.

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