• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

The Dividend Discount Model

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › The Dividend Discount Model

  • This topic has 2 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • November 18, 2014 at 9:31 am #210904
    olka
    Member
    • Topics: 2
    • Replies: 9
    • ☆

    Hi, Can, you help me wiht the dividend discount model when dividends are not paid next your but will be paid in 3 years and have constant growth after that, for example. Like here :
    GXG Co could suspend dividends for two years, and then pay dividends of 25 cents per share from the end of the
    third year, increasing dividends annually by 4% per year in subsequent years. Dividends in recent years have grown
    by 3% per year
    Thank you

    November 18, 2014 at 10:08 am #210920
    olka
    Member
    • Topics: 2
    • Replies: 9
    • ☆

    I ment, how to calculate market value of shares based on valuation on future dividends

    November 18, 2014 at 11:14 am #210965
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    You use the dividend growth model, but because the dividends don’t start for 3 years (instead of in 1 year) you need to discount for the extra 2 years.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • amaanalli on Fraud, bribery, whistle-blowing and company ethics – ACCA Strategic Business Leader (SBL)
  • verweijlisa on Group SPL – Group profit on disposal – ACCA Financial Reporting (FR)
  • verweijlisa on Group SPL – Group profit on disposal – ACCA Financial Reporting (FR)
  • verweijlisa on Group SPL – Group profit on disposal – ACCA Financial Reporting (FR)
  • nosiphoceliwedlamini@gmail.com on Financial instruments – convertible debentures – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in