Question
What is meant by intrinsic valuation? What is meant by dividend discount models? What assumptions about dividends and dividend growth are necess ary to apply
What is meant by intrinsic valuation?
What is meant by dividend discount models?
What assumptions about dividends and dividend growth are necess
ary to apply the dividend
growth model (a.k.a. Dividend Discount Model or Gordon growth m
odel)?
How can current stock value be estimated when there is no divid
end?
How can P/E be used to project an expected future price?
Know how to calculate
:
Value based on constant, sustainable dividend growth (DDM, or G
ordon growth model)
Dividend growth rate, price, or di
scount rate from price and th
e DDM
Value based on two-stage dividend growth
Expected future price based on P/E and expected earnings growth
Know how to calculate:
One-year forward rates from current term structure
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