Explore BrainMass

The Dividend Discount Model (DDM)

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

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 September 19, 2018, 11:10 pm ad1c9bdddf - https://brainmass.com/business/discounted-cash-flows-model/dividend-discount-model-ddm-355855

Solution Summary

The solution computes price of share using DDM.