Dividend Discount Model (DDM)

Dividends = (Dividend Payout Ratio) x Earnings. Or, in per share terms. DPS = (Dividend Payout Ratio) x EPS. Thus, in per share terms . Where b’s represent the payout ratios. That is, the fraction of earnings paid out to shareholders in the form of dividends. Unlike most bonds, stocks (or, shares) represent ownership in a corporation and therefore have no maturity date. Thus, … ................
................