It is worthwhile to view a share of stock as the sum of its worth if the
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It is worthwhile to view a share of stock as the sum of its worth if the company behaves like a cash cow (the company does no investing) and the value per share of its growth opportunities.
We write the value of a share as:
EPS NPVGO R
We showed that, in theory, share price must be the same whether the dividend growth model or the formula here is used. LO.1
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