How growth is related to capital appreciation in dividend growth model – InterviewSolution

1.	How growth is related to capital appreciation in dividend growth model?
Answer» Growth Model Formula. The Gordon Growth Model, ALSO known as the DIVIDEND Growth Model, assumes that DIVIDENDS grow at a constant or stable rate. The formula is Intrinsic value of STOCK = D/(k-g). Consider a company whose stock is TRADING at $110 per share.

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