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Posted on Oct 19, 2024

The formula for valuing a constant growth stock is R = P - D 1 g P = D 1 ( R - g )

The formula for valuing a constant growth stock is

R = P - \frac{D_{1}}{g}

P = \frac{D_{1}}{(R - g)^{2}}

P_{0} = \frac{D_{1}}{R - g}

P = D_{1} - \frac{g}{R}

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