Question

Calculate value of share in gordon model

Answer 1

is a stock valuation method that calculates a stock’s intrinsic value, regardless of current market conditions. Investors can then compare companies against other industries using this simplified model. Major contributors to this model are Myron J. Gordon, Robert F. Weise, and John Burr Williams.

Answer 2

Answer:

- Investopedia To estimate the value of a stock, the model takes the infinite series of dividends per share and discounts them back into the present using the required rate of return. The result is the simple formula above, which is based on the mathematical properties of an infinite series of numbers growing at a constant rate.