Intrinsic Value Calculation Using Gordon Growth Model

Medium Equity Valuation Techniques Dividend Discount Models

ABC Corporation pays an annual dividend of $3 per share, and you expect that the dividend will grow at an annual rate of 4% indefinitely. If the required rate of return for an equity investor in ABC Corporation is 10%, what is the intrinsic value of the stock according to the Gordon Growth Model (Dividend Discount Model)?

$50.00