Equity Valuation

Question 1

What is the formula to calculate a company‘s dividend?

Answer 1

Vo=Sum((Dt/(1+r)t)+Pn/(1+r)n)

Question 2

How to calculate FCFE?

Answer 2

FCFE=CFO-FCInv+Net borrowing

Question 3

What is the gordon growth model formula?

Answer 3

Vo=D1/r-g

Question 4

How to calculate the growth rate for gordon model?

Answer 4

g=b*ROE
b=1-Dividend payout ratio

Question 5

How to calculate the intrinsic value of a multistage growth dividend?

Answer 5

Vo=Sum(Do(1+gs)t/(1+r)t) + Vn/(1+r)n)