Page 10 - FINAL CFA SLIDES DECEMBER 2018 DAY 14
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Session Unit 14:
49. Equity Valuation: Concepts and Basic Tools
Example: Multiple-period DDM valuation: A stock recently paid a dividend of $1.00 which is expected to grow at
5% per year. The required rate of return of 13.2%. Calculate the value of this stock assuming that it will be priced
at $14.12 two years from now.
tanties
