Because the question gives the value for a dividend at t=4, which is one year away. If you applied the growth rate to it, you would gave the dividend at t=5
@@letmeexplaincfaHello, but if we use the dividend for time 5, so 1,28(1+0,051)/ 0,078-0,051 and compute V4=49,825 and then 49,825/(1+0,078)^4. We will end with the value 36,895. Why there is difference if we compute for V3 and V4?
I will be recording a comprehensive set of videos on all topics. Started the process today! Hypothesis testing will of course, in due time, be one of them!
clearly and beautifully explained. Thank you!
Thank you very much
Very helpful🙌
Thanks 🙏
Thank you
Hi, kindly asking for an example/work-through of a 2 stage DDM example. It's seemingly more complicated for me
Ok, will put it on my list!
thank you sir
You are very welcome!
why in the V3 calculation you didn't use the growth rate of the dividend at the numerator?
Because the question gives the value for a dividend at t=4, which is one year away. If you applied the growth rate to it, you would gave the dividend at t=5
@@letmeexplaincfaHello, but if we use the dividend for time 5, so 1,28(1+0,051)/ 0,078-0,051 and compute V4=49,825 and then 49,825/(1+0,078)^4. We will end with the value 36,895. Why there is difference if we compute for V3 and V4?
Great video! quick question: the required rate of return is: .078. Why do you add 1? Thanks for the videos.
Is it because of the present value formula? (1+r)
Yes, that's right. Thanks!
@@letmeexplaincfa thank you
Hi please can we get hypothesis testing videos for cfa level 1
I will be recording a comprehensive set of videos on all topics. Started the process today! Hypothesis testing will of course, in due time, be one of them!