Present value of growth opportunities
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Explain how the value of the stock paying dividend is estimated. What is the difference between constant growth dividend and non-constant growth dividend models? What is meant by present value of growth opportunities (PVGO)? The current dividend is $2.00 and is expected to grow 5% indefinitely. What is the value of the company's stock?
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This provides the steps to calculate the Present value of growth opportunities.
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Value of stock paying dividend is estimated by finding the present value of the dividend.
Cosntant growth dividend means the ...
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