Dividend Growth Model | Gordon Growth Model (Constant Growth) | EXAMPLES

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  • Опубликовано: 14 окт 2024

Комментарии • 28

  • @nonhlanhlamvelase7480
    @nonhlanhlamvelase7480 4 года назад +16

    You guys have made my life easier. I’m doing my Advanced diploma in financial management, your videos makes studying easier

  • @daniellemincer9116
    @daniellemincer9116 Год назад +1

    I have spent hours trying to understand it from my textbook and couldn't figure it out, your video makes so much more sense, thank you!!!

  • @juliaroban7667
    @juliaroban7667 3 года назад +5

    I just spent over an hour watching my lecture that was so hard to understand and you explained it within 10mins. Thank you !

  • @libertychigwaza6892
    @libertychigwaza6892 2 года назад +2

    I enjoyed the lesson so much easy to follow and understand. I'm studying towards my degree in Finance. Thank you.

  • @nobuhlemthembuassertivewom6177
    @nobuhlemthembuassertivewom6177 4 года назад +1

    thank you now im comfortable with these formulas

  • @victoriayungo9974
    @victoriayungo9974 Год назад

    When asked to determine the MPS using the dividend growth model for your case you're using the Gordon model. So my question is, is the dividend growth model the same as the Gordon model? Kindly help

  • @АйданаЖакыпбаева-ц5д

    Sorry, sir, I am confused about d1, why can't we just take it as 6 in the second example? I have made several exercisers, where we don’t add (1+0.1)

  • @purudate4049
    @purudate4049 Год назад

    Greetings ! Is Gordon's model suitable for a company which has borrowed a large sum of money? Thus the presence of debt on Balance Sheet

  • @piyumiweragala3484
    @piyumiweragala3484 4 месяца назад

    Thank you

  • @nadzimpagek3518
    @nadzimpagek3518 4 года назад +1

    Hi is that minimum return of 18% is divident yield ?

    • @Counttuts
      @Counttuts  4 года назад

      It is the required rate of return

  • @natnaelfasil9174
    @natnaelfasil9174 2 года назад +2

    How can we calculate the growth rate ?

  • @HarryMdulamizu
    @HarryMdulamizu Год назад

    Great stuff

  • @giannispanos1
    @giannispanos1 4 года назад

    If I only have the current trading share price which is $67 and the last 5 years dividends growing by 7% on average annually. Last year divedend was $5.9. How can I calculate the real market price? I calculated based on the above that cost of equity is 16.23%. Should I use the 18% cost of equity that you mentioned and the 10% growth rate on dividends? I did that and found 81$ but I am not sure why shall I use these parameters in my example.

  • @celestinechike3048
    @celestinechike3048 2 года назад

    Company TYK forecasts that it will begin paying dividends seven years from now, at which point dividends are $1 per share.
    Please what is D0 or D1 when? I’m trying to calculate the price of shares

  • @victorndiweni261
    @victorndiweni261 4 года назад

    Thank you so much

  • @phamhoa7022
    @phamhoa7022 2 года назад

    There is a point that i don't understand. g is defined as dividend growth rate. However in some case, i see that they put g = (1-payout ratio)*ROE. This latter (1-payout ratio)*ROE = sustainable growth rate, not dividend growth rate. For me g must be equal to Payout ratio*ROE. At this point I don't understand very well. Can you explain ? Thanks

  • @M1hlali-k5w
    @M1hlali-k5w 3 года назад

    Thanks you

  • @irene7833
    @irene7833 4 года назад

    What are some of the issues involved in implementing the dividend growth model

    • @Counttuts
      @Counttuts  4 года назад

      Check out the advantages and disadvantages towards the end of the lesson

  • @sabrinsshelter9434
    @sabrinsshelter9434 3 года назад

    How do the growth rate of the dividend payments and the required rate of return affect stock value? Analyze your answer with examples.
    Pls help me for answer

  • @ronakkhetan5074
    @ronakkhetan5074 3 года назад

    but the share holders are not earning 18% on their investment of R78. They are only earning 8.46% in Year 1 (6.6/78).
    Can any1 help me in solving this?

  • @pawandhanwani7853
    @pawandhanwani7853 4 года назад

    Why we are deducting growth from cost of equity

    • @Counttuts
      @Counttuts  4 года назад +1

      It is a mathematical computation. Since we are not calculating dividends into perpetuity, we just reduce the discounting rate (the required rate of return) by the growth rate. To put it simply, the lower the denominator in the formula, the higher the market price. As such, the denominator is reduced by the growth rate.

    • @yashdhanwani8808
      @yashdhanwani8808 4 года назад

      @@Counttuts ohh thanks

  • @krishnenduray1758
    @krishnenduray1758 3 года назад

    u have simply stated the formula , where is the explanation ?