| shareValueGGMNegativeGrowth {stockAnalyst} | R Documentation |
Valuing a share of stock using Gordon Growth Model with Negative Growth.
Description
The company named Afton Mines is a profitable venture that is expected to pay a $4.25 dividend next year. Because it is depleting its mining properties, the best estimate is that dividends will decline forever at a rate of 4 percent. The required rate of return on Afton stock is 9 percent. Compute the value of Afton share (Jerald E. Pinto, 2020).
Usage
shareValueGGMNegativeGrowth(dividend, r, negG)
Arguments
dividend |
A number. |
r |
A number. |
negG |
A number. |
Details
According to information provided by Jerald E. Pinto (2020), the method shareValueGGMNegativeGrowth is developed for Valuing a share of stock using Gordon Growth Model with Negative Growth for the values passed to its three arguments. Here, dividend is dollar value of the dividend, r is required rate of return and, negG represents the rate of decline in dividend.
Value
Input values to three arguments dividend , r and negG.
Author(s)
MaheshP Kumar, maheshparamjitkumar@gmail.com
References
Pinto, J. E. (2020). Equity Asset Valuation (4th ed.). Wiley Professional Development (P&T). https://bookshelf.vitalsource.com/books/9781119628194
Examples
shareValueGGMNegativeGrowth(dividend=4.25,r=0.12,negG=-0.10)
shareValueGGMNegativeGrowth(dividend=4.25,r=0.12,negG=0.10)