Dividend Growth Model

Inputs Latest Dividend DO Dividend at t-N Number of ears between Dividends N Output Calculated Growth Rate 10 11 12 13 14 15 16 17 19 Ex ected Next Period Dividend Inputs Dividend Growth Rate Next Period Dividend Required Rate of Retum Outputs Price at Time 0 PO Inputs Dividend Growth Rate Next Period Dividend Required Rate of Retum Price at Time 0 PO Outputs Re uired Rate of Retum Dividend Growth Model 0.97 0.50 24 3% 1.00 3% 1.00 Inputs Risk Free Rate Expected Market Retum Beta Output Calculated Required Rate of Retum Input Next Period Dividend Required Rate of Retum Price at Time 0- PO Outputs Dividend Growth Rate 2 1 1.00 15.00 15.00