PV of expected dividends
FV of expected dividends
PV of intrinsic rate
FV of intrinsic rate
✅ The correct answer is A.
Third step in calculating value of stock with non-constant growth rate is to find PV of expected dividends. The first component of value is the present value of the expected dividends during the high growth period.
Third step in calculating value of stock with non-constant growth rate is to find PV of expected dividends. The first component of value is the present value of the expected dividends during the high growth period.