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Stock Valuation and Plowback Ratio Insights by Ibrahim Mansha is a document available to read on EtoBox.

Given: Current Price = $100 Last Dividend = $3 Required Rate of Return = 10% Use the constant growth dividend discount model: Price = Dividend / (Required Return - Growth Rate) $100 = $3 / (0.10 - Growth Rate) Growth Rate = 0.10 = 3/100 = 0.03 = 3% Therefore, the implied constant growth rate assumed by the market is 3%. 18

Author

Ibrahim Mansha

Language

EN