HCF of three numbers

Present Value of Stock with Constant Growth Calculator

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Present Value Basics of Time Value of Money Future value

✖Estimated Dividends for Next Period is the estimated distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders for the next period.ⓘ Estimated Dividends for Next Period [D1]			+10% -10%
✖A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.ⓘ Rate of Return [%RoR]			+10% -10%
✖Growth Rate refer to the percentage change of a specific variable within a specific time period, given a certain context.ⓘ Growth Rate [g]			+10% -10%

✖Price of Stock is the price of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.ⓘ Present Value of Stock with Constant Growth [P]

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Present Value of Stock with Constant Growth Solution

STEP 0: Pre-Calculation Summary

Formula Used

Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate)
P = D1/((%RoR*0.01)-g)
This formula uses 4 Variables

Variables Used

Price of Stock - Price of Stock is the price of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
Estimated Dividends for Next Period - Estimated Dividends for Next Period is the estimated distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders for the next period.
Rate of Return - A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
Growth Rate - Growth Rate refer to the percentage change of a specific variable within a specific time period, given a certain context.

STEP 1: Convert Input(s) to Base Unit

Estimated Dividends for Next Period: 0.25 --> No Conversion Required
Rate of Return: 4.5 --> No Conversion Required
Growth Rate: 0.02 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

P = D1/((%RoR*0.01)-g) --> 0.25/((4.5*0.01)-0.02)

Evaluating ... ...

P = 10

STEP 3: Convert Result to Output's Unit

10 --> No Conversion Required

FINAL ANSWER

10 <-- Price of Stock

(Calculation completed in 00.020 seconds)

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Present Value of Stock with Constant Growth Formula

LaTeX Go

Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate)
P = D1/((%RoR*0.01)-g)

How to Calculate Present Value of Stock with Constant Growth?

Present Value of Stock with Constant Growth calculator uses Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate) to calculate the Price of Stock, Present Value of Stock with Constant Growth is the price of a security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings when there is constant growth. Price of Stock is denoted by P symbol.

How to calculate Present Value of Stock with Constant Growth using this online calculator? To use this online calculator for Present Value of Stock with Constant Growth, enter Estimated Dividends for Next Period (D1), Rate of Return (%RoR) & Growth Rate (g) and hit the calculate button. Here is how the Present Value of Stock with Constant Growth calculation can be explained with given input values -> -1.612903 = 0.25/((4.5*0.01)-0.02).

FAQ

What is Present Value of Stock with Constant Growth?

Present Value of Stock with Constant Growth is the price of a security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings when there is constant growth and is represented as P = D1/((%RoR*0.01)-g) or Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate). Estimated Dividends for Next Period is the estimated distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders for the next period, A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost & Growth Rate refer to the percentage change of a specific variable within a specific time period, given a certain context.

How to calculate Present Value of Stock with Constant Growth?

Present Value of Stock with Constant Growth is the price of a security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings when there is constant growth is calculated using Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate). To calculate Present Value of Stock with Constant Growth, you need Estimated Dividends for Next Period (D1), Rate of Return (%RoR) & Growth Rate (g). With our tool, you need to enter the respective value for Estimated Dividends for Next Period, Rate of Return & Growth Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Price of Stock?

In this formula, Price of Stock uses Estimated Dividends for Next Period, Rate of Return & Growth Rate. We can use 1 other way(s) to calculate the same, which is/are as follows -

Price of Stock = Dividend/Rate of Return

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