Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. Timothy Li is a consultant, accountant, and ...
The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock.
Dividend discount model (DDM) evaluates stock based on future dividends, using cost of capital and growth rate. Most common DDM, the Gordon Growth Model, calculates intrinsic stock value by ...
This paper derives a tax-adjusted discount rate formula with a constant proportion leverage policy, investor taxes, and risky debt. The result depends on an assumption about the treatment of tax ...
Therefore, the formula for the value of the stock can ... it uses variables such as the dividend per share and the net discount rate, which is represented as the required rate of return or the ...