Dividend Discount Model (Calculations for CFA® Exams)

AnalystPrep's Concept Capsules for CFA® and FRM® Exams
This series of video lessons is intended to review the main calculations required in your CFA and FRM exams.
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[@havish6483]

This is the clearest and most concise explanation I could find. Thanks!

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[@mohamedbengana3344]

Thank you for sharing such a beneficial knowledge. Really appreciate your constant efforts.

[@analystprep]

My pleasure!

[@nemophilist_91]

This was great, thanks a ton!

[@fforfun8701]

Why do we subtracted g from ke in denominator?

[@xolisilesithole8768]

you the best thank you so much

[@AbdulQadir-gf5nv]

Thanks a lot brother … May Almighty Allah shower his countless blessings, Aameen 🤲🏼

[@krishnagokulwala4118]

Thanku sir

[@kelvinbmoyo8386]

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[@analystprep]

You are very welcome!

[@AZ-vw8gn]

Thank you

[@analystprep]

You're welcome

[@monicaalvarez6361]

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[@saitejadasari763]

Why growth rate is subtracted from cost of equity in Gordon growth model

[@navinreddy1087]

when you subtract growth rate from cost of equity (discount rate) you are basically adjusting the cost of equity that means as company grows it may become more stable and less risky as compared to declining earnings and investor demand for lower required rate of return(cost of equity ).

[@stnawanga7328]

If are not having dividend for first two years. How we can solve this question

[@harmanhora5011]

free cash flow will replace dividend