Question
iv) Match the DDM equation to the pattern of future dividend growth a) No Growth in Dividends [ Choose one of the following below ]
iv) Match the DDM equation to the pattern of future dividend growth
a) No Growth in Dividends
[ Choose one of the following below ]
P=D1/(r-g)
P=D1/(1+r) + D2/)1+r)^2 + D3/(1+r)^3+.+Dn/(1+r)^n + Dn+1/(r-g)/(1+r)^n
P=D/r
P=r*D
P=D1 + D2 + D3 + ... + Dn
P=D0/(r-g)
b) Constant Growth Dividends
[ Choose one of the following below]
P=D1/(r-g)
P=D1/(1+r) + D2/)1+r)^2 + D3/(1+r)^3+.+Dn/(1+r)^n + Dn+1/(r-g)/(1+r)^n
P=D/r
P=r*D
P=D1 + D2 + D3 + ... + Dn
P=D0/(r-g)
C) Supernormal Growth in Dividends
[ Choose one of the following below]
P=D1/(r-g)
P=D1/(1+r) + D2/)1+r)^2 + D3/(1+r)^3+.+Dn/(1+r)^n + Dn+1/(r-g)/(1+r)^n
P=D/r
P=r*D
P=D1 + D2 + D3 + ... + Dn
P=D0/(r-g)
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