Stocks

3 Pages
95 Views
Unlock Document

Department
Management
Course
MGT338H5
Professor
Louis Florence
Semester
Fall

Description
Class 5StocksWe want to attempt to value a stock Stocks often provide dividends and also provide the sale price when the stock is soldIf P represents the value of the stock it may be the value of all the shares or the valueshare tdepending on the context at time t Div represents the dividend at time t and r is the appropriate tdiscount rate thenPDiv1rP1r011PDiv1rP1r12222PDiv1rDiv1rP1r012223Continuing we get PDiv1rDiv1rDiv1r 0123In the case of constant dividends DivDiv and PDivr using the 120perpetuity formulaIn the case of constant growth DivDiv1g DivDiv1g etc1021PDivrg01T
More Less

Related notes for MGT338H5

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit