CH09StocksandTheirValuation(财务管理,英文版).pptxVIP

;;;;;;Dividend growth model Free cash flow method Using the multiples of comparable firms;One whose dividends are expected to grow forever at a constant rate, g.;;;;;;= =;;;Rearrange model to rate of return form:;;;Nonconstant growth followed by constant growth:;;During nonconstant growth, D/P and capital gains yield are not constant, and capital gains yield is less than g. After t = 3, g = constant = 6% = capital gains yield; k = 13%; so D/P = 13% – 6% = 7%.;25.72;;;;;Once the value of the firm is estimated, an estimate of the stock price can be found as follows: MV of common s