Ask a New Question

How can I find the supernormal growth rate and constant growth rate of a stock?

V = D1/k-g

V = the value of the stock

D1 = the dividend next period

k = the required rate of return

g = constant growth rate

I'm confused on how to combine the constant growth rate formula with the supernormal growth rate.

Ask a New Question or answer this question.

Similar Questions

What is the value of a stock that grows at a supernormal rate of 18% for the first four years, and then slows down to a constant
1. 2 answers
What is the value of a stock that grows at a supernormal rate of 18% for the first four years, and then slows down to a constant
1. 0 answers
What is the value of a company stock if it grows at a supernormal rate of 18% for the first four years, and then slows down to a
1. 1 answer
A population grows from 11,000 to 15,000 in three years.Enter your answers to three decimal places. Assuming the growth is
1. 1 answer

more similar questions