Inputs Latest Dividend DO Dividend at t-N Number of years between Dividends N Output Calculated Growth Rate Expected Next Period Dividend Inputs Dividend Growth Rate Next Period Dividend Required Rate of Return Outputs Price at Time 0 PO Inputs Dividend Growth Rate Next Period Dividend Required Rate of Return Price at Time 0 PO Dividend Growth Model Outputs Required Rate of Return $ 5 1.00 10% 6) 0.97 0.50 5 1.00 10% $ 15.00 Inputs Risk Free Rate Expected Market Return Beta Output Calculated Required Rate of Return Input Next Period Dividend Required Rate of Return Price at Time O- PO Outputs Dividend Growth Rate 1 11 1 4 1 1 11 1 1 1 1 2 10% 1 $ 1.00 10% $ 15.00