In Chapter 10 we learned that the dividend growth model suggests that the fair value of a common share is based on next year 's dividend This is expressed in the formula P0 D1 K0 g With this in mind, how is it possible for a company like Google, which has never paid a dividend, to have a share price of around US $500

Question: In Chapter 10 we learned that the dividend growth model suggests that the fair value of a common share is based on next year's dividend.

In Chapter 10 we learned that the growth model suggests that the fair value of a common share is based on next year's This is expressed in the formula P0 = D1 / K0 - g. With this in mind, how is it possible for a company like Google, which has never paid a to have a share price of around US $500?

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