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    The Dividend Discount Model (DDM)

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    IGT, Inc. just paid a dividend of 1.75 per share. Analysts believe dividends will grow 16% per year for the next 5 years, and at 1% after that. How do I calculate the value of a share if the required return on the company's shares is 12%?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:43 am ad1c9bdddf
    https://brainmass.com/business/discounted-cash-flows-model/dividend-discount-model-ddm-355855

    Solution Summary

    The solution computes price of share using DDM.

    $2.19

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