Question: Using a dividend discount model (DDM) what is the dividend growth rate implied by the current share price of $44.48? 2018 2019 2020 2021 2022
-
Using a dividend discount model (DDM) what is the dividend growth rate implied by the current share price of $44.48?
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
| Years from Today: | 1 | 2 | 3 | 4 | 5 | |
| EPS | 2.92 | 3.18 | 3.56 | 4.06 | 4.34 | 4.65 |
| EPS Growth | ||||||
| Dividend Payout | ||||||
| DPS | 1.47 | 1.5 | 1.56 | 1.8 | 1.95 | 2.1 |
| DPS Growth | ||||||
| Terminal Value | ||||||
| Discounted DPS and Terminal Value | ||||||
| Price per Share from DDM | ||||||
| Actual Price | ||||||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
