Advertising

Constant growth model

• Also called the Gordon-Shapiro model, an application of the dividend discount model which assumes (1) a fixed growth rate for future dividends and (2) a single discount rate.

• A widely cited dividend valuation approach that assumes that dividends will grow at a constant rate that is less than the required return.

 
 

Follow this link for all the terms related to model.

 
 Embedded terms in definition
 Discount rate
Discount
Dividend discount model
Dividends
Dividend
Future
Growth rate
Required return
Return
Valuation
Will
 
 Related Terms
 

<< Constant growth dividend valuation gordon model Constant maturity >>

Practical Advice for Everyone on How to Save and Manage Money: No matter how old or young you are, there are some basic things you can do to better manage and protect your money. Here are recommendations from FDIC Consumer News. More...

Most people are more comfortable with old problems than with new solutions. - Anonymous

Advertising



Copyright 2009-2019 GVC. All rights reserved.