Dividend Growth Model | Gordon Growth Model (Constant Growth)

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Dividend Growth Model | Gordon Growth Model (Constant Growth) | EXAMPLES

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Counttuts

Күн бұрын

Пікірлер: 28

@nonhlanhlamvelase7480 4 жыл бұрын

You guys have made my life easier. I’m doing my Advanced diploma in financial management, your videos makes studying easier

@juliaroban7667 2 жыл бұрын

I just spent over an hour watching my lecture that was so hard to understand and you explained it within 10mins. Thank you !

@daniellemincer9116 Жыл бұрын

I have spent hours trying to understand it from my textbook and couldn't figure it out, your video makes so much more sense, thank you!!!

@libertychigwaza6892 2 жыл бұрын

I enjoyed the lesson so much easy to follow and understand. I'm studying towards my degree in Finance. Thank you.

@nobuhlemthembuassertivewom6177 3 жыл бұрын

thank you now im comfortable with these formulas

@piyumiweragala3484 2 ай бұрын

Thank you

@victorndiweni261 3 жыл бұрын

Thank you so much

@mihlalimsuthu1626 3 жыл бұрын

Thanks you

@user-hh2io4tw4z Жыл бұрын

Great stuff

@natnaelfasil9174 2 жыл бұрын

How can we calculate the growth rate ?

@victoriayungo9974 Жыл бұрын

When asked to determine the MPS using the dividend growth model for your case you're using the Gordon model. So my question is, is the dividend growth model the same as the Gordon model? Kindly help

@user-he5fy6rv6z 2 жыл бұрын

Sorry, sir, I am confused about d1, why can't we just take it as 6 in the second example? I have made several exercisers, where we don’t add (1+0.1)

@purudate4049 10 ай бұрын

Greetings ! Is Gordon's model suitable for a company which has borrowed a large sum of money? Thus the presence of debt on Balance Sheet

@nadzimpagek3518 4 жыл бұрын

Hi is that minimum return of 18% is divident yield ?

@Counttuts 4 жыл бұрын

It is the required rate of return

@giannispanos1 3 жыл бұрын

If I only have the current trading share price which is $67 and the last 5 years dividends growing by 7% on average annually. Last year divedend was $5.9. How can I calculate the real market price? I calculated based on the above that cost of equity is 16.23%. Should I use the 18% cost of equity that you mentioned and the 10% growth rate on dividends? I did that and found 81$ but I am not sure why shall I use these parameters in my example.

@celestinechike3048 2 жыл бұрын

Company TYK forecasts that it will begin paying dividends seven years from now, at which point dividends are $1 per share. Please what is D0 or D1 when? I’m trying to calculate the price of shares

@phamhoa7022 Жыл бұрын

There is a point that i don't understand. g is defined as dividend growth rate. However in some case, i see that they put g = (1-payout ratio)*ROE. This latter (1-payout ratio)*ROE = sustainable growth rate, not dividend growth rate. For me g must be equal to Payout ratio*ROE. At this point I don't understand very well. Can you explain ? Thanks

@irene7833 4 жыл бұрын

What are some of the issues involved in implementing the dividend growth model

@Counttuts 4 жыл бұрын

Check out the advantages and disadvantages towards the end of the lesson

@sabrinsshelter9434 3 жыл бұрын

How do the growth rate of the dividend payments and the required rate of return affect stock value? Analyze your answer with examples. Pls help me for answer

@ronakkhetan5074 2 жыл бұрын

but the share holders are not earning 18% on their investment of R78. They are only earning 8.46% in Year 1 (6.6/78). Can any1 help me in solving this?

@pawandhanwani7853 4 жыл бұрын

Why we are deducting growth from cost of equity

@Counttuts 4 жыл бұрын

It is a mathematical computation. Since we are not calculating dividends into perpetuity, we just reduce the discounting rate (the required rate of return) by the growth rate. To put it simply, the lower the denominator in the formula, the higher the market price. As such, the denominator is reduced by the growth rate.

@yashdhanwani8808 4 жыл бұрын

@@Counttuts ohh thanks