1
Q
Price and expected return
A
2
Q
Equation for the initial stock price P0:
A
3
Q
The dividend yield of a stock is
A
4
Q
Dividend yield
A
A financial ratio that indicates how much a company pays out in dividends each year relative to its share price. Dividend yield is represented as a percentage and can be calculated by dividing the dollar value of dividends paid in a given year per share of stock held by the dollar value of one share of stock.
5
Q
Earnings per share ratio
A
6
Q
General valuation formula for stocks:
A
7
Q
Constant growth valuation formula.
A
8
Q
Dividend growth in year t is
A
9
Q
Expected return estimate
A
10
Q
Tools for Valuation Analysis
A
11
Q
Present Value of Growth Opportunities
A
Financial Markets
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Decks in class (11)
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