Professional Documents
Culture Documents
200000
interest rate 9% 9%
tax
30%
cost of debt
6%
12600
0.063
tr
year
Dividend
Div growth
DDM
STOCK PRICE
0
4
1
2
3
4
5
6
4.224 4.460544 4.710334 4.974113 5.252664 5.546813
7
59.5
horizon value
3.751332 3.518123 4.710334 4.974113 5.252664 5.546813 terminal value
48.49 27.75338
48.49
11%
12%
13%
ROE
RR
growth
ga
7%
Re
80%
rf
5.60%
beta
3% << under your assumption
rm
re
1%
2%
=rf+b(Rm+rf)
9%
1.2
12%
12.600%
12.60%
PROFESSOR DAMARDORAN
NYU
horizon value
terminal value