Dividend Discount Model (Calculations for CFA® Exams)

[@havish6483]

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

[@analystprep]

You're very welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a Google review using this link: g.page/r/CQIlM78xSg01EB0/review

[@rajaneeshkataru3821]

Excellent explanation of concept and easy to grasp for a beginner great job !!!

[@mohamedbengana3344]

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

[@analystprep]

My pleasure!

[@oc_vatsal_1197]

Why do we discount at the end using the required rate instead of the rate of that period of growth?

[@AbdulQadir-gf5nv]

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

[@fforfun8701]

Why do we subtracted g from ke in denominator?

[@nemophilist_91]

This was great, thanks a ton!

[@kelvinbmoyo8386]

Thank i really appreciate

[@analystprep]

You are very welcome!

[@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 ).

[@krishnagokulwala4118]

Thanku sir

[@AZ-vw8gn]

Thank you

[@analystprep]

You're welcome

[@monicaalvarez6361]

do you offer tutoring?

[@xolisilesithole8768]

you the best thank you so much

[@stnawanga7328]

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

[@harmanhora5011]

free cash flow will replace dividend