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  • DDM Example

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    Jinesh Shah
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    ddm example

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    4 views1 page

    DDM Example

    Uploaded by

    Jinesh Shah

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    perpetuity model CF cost of capital

    GAIL - better dividend interest rate investment


    cmp 138 10 7% 142.8571 value 1 year before
    DPS 10
    value = present value of dividends upto perpetuity
    value = present of projected dividends + pv of terminal value
    value of perpetuity CF/rate

    terminal
    model for future dividends 7% pv value pv tv value of share
    d1 11 0.934579 10.28037
    d2 12 0.873439 10.48126
    d3 12.5 0.816298 10.20372
    d4 14 200 163.2596 194.2249
    forever
    cost of capital 7%

    buy

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