Page 9 - FINAL CFA SLIDES DECEMBER 2018 DAY 14
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Session Unit 14:
49. Equity Valuation: Concepts and Basic Tools
Example: One-period DDM valuation
Calculate the value of a stock that paid a $1 dividend last year, if next year’s dividend will be 5% higher and
the stock will sell for $13.45 at year-end. The required return is 13.2%.
tanties
