Discounted Cash Flow Method

Example: Two$-$Stage Growth Model $-$ Dividend Discount Model

ABC Ltd$.$ has paid a dividend of $$4$ this year$-$assuming a higher growth for the next $3$ years at $15\%$ and stable growth of $4\%$ thereafter and the required rate of return of the company is $10\%.$ calculate the value using a two$-$stage dividend discount model.