Multistage Growth Models

b. calculate and interpret the value of a common stock using the dividend discount model (DDM) for single and multiple holding periods;

i. explain the assumptions and justify the selection of the twostage DDM, the H-model, the three-stage DDM, or spreadsheet modeling to value a company’s common shares;

j. explain the growth phase, transition phase, and maturity phase of a business;

k. describe terminal value and explain alternative approaches to determining the terminal value in a DDM;

l. calculate and interpret the value of common shares using the twostage DDM, the H-model, and the three-stage DDM;

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