Dividend Discount Model (Calculations for CFA® Exams)
Master the Dividend Discount Model (DDM) for CFA Level I and as a primer for Level II. In this Concept Capsule, we value preferred stock and common equity using 1 year, multi year, and infinite horizon (Gordon Growth) versions of DDM. You will learn inputs, CAPM based discount rates, timeline setup, common pitfalls, two stage growth, and a fully worked example.
What you will be able to do:
• Value preferred stock as a perpetuity
• Apply 1 year and multi year DDM
• Use the Gordon Growth Model and two stage DDM
• Estimate required return with CAPM
AnalystPrep's Concept Capsules for CFA® and FRM® Exams
This series of video lessons is intended to review the main calculations required in your CFA and FRM exams.
For Level I Video Lessons, Study Notes, Question Bank, CBT Mock Exams & More: https://analystprep.com/shop/cfa-leve...
For FRM (Part I & Part II) Video Lessons, Study Notes, Question Bank, CBT Mock Exams & More: https://analystprep.com/shop/unlimite...
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