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Calculate an estimated value of a share (P0) of the stock using the Constant Growth Model By
using the historical rate of growth in the dividend, the assumption is that the company will
sustain its recent rate of dividend growth into the future. D 0 = $2.57 G = .02 R = .105

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  • 1. Calculate an estimated value of a share (P0) of the stock using the Constant Growth Model By using the historical rate of growth in the dividend, the assumption is that the company will sustain its recent rate of dividend growth into the future. D 0 = $2.57 G = .02 R = .105