PV of Div = Div * PVF(r%, n)
Year | CF | Formula | Calculation |
1 | $ 2.48 | D0(1+g)^1 | 1.94(1.28^1) |
2 | $ 3.18 | D0(1+g)^2 | 1.94(1.28^2) |
3 | $ 4.07 | D0(1+g)^3 | 1.94(1.28^3) |
4 | $ 4.29 | D3(1+g) | 4.07(1.054) |
PV of Div:
Year | CF | PVF @9.6% | Disc CF |
1 | $ 2.48 | 0.9124 | $ 2.26 |
2 | $ 3.18 | 0.8325 | $ 2.65 |
3 | $ 4.07 | 0.7596 | $ 3.09 |
PV of Div | $ 8.00 |
P3:
P3 = D4 / [ Ke - g ]
= $ 4.29 / [ 9.6% - 5.4% ]
= $ 4.29 / 4.2%
= $ 102.14
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