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Present Value of Stock with Zero Growth Formula

GoPresent Value of Stock with Constant Growth Formula

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Price of Stock is the price of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. Check FAQs

P = \frac{D}{%RoR}

P - Price of Stock?D - Dividend?%RoR - Rate of Return?

Present Value of Stock with Zero Growth Example

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Here is how the Present Value of Stock with Zero Growth equation looks like with Values.

Here is how the Present Value of Stock with Zero Growth equation looks like with Units.

Here is how the Present Value of Stock with Zero Growth equation looks like.

7.7778 = \frac{35}{4.5}

7.7778 = \frac{35}{4.5}

7.7778 = \frac{35}{4.5}

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Present Value of Stock with Zero Growth Solution

Follow our step by step solution on how to calculate Present Value of Stock with Zero Growth?

FIRST Step Consider the formula

P = \frac{D}{%RoR}

Next Step Substitute values of Variables

∴

P = \frac{35}{4.5}

Next Step Prepare to Evaluate

∴

P = \frac{35}{4.5}

Next Step Evaluate

∴

P = 7.77777777777778

LAST Step Rounding Answer

∴

P = 7.7778

Present Value of Stock with Zero Growth Formula Elements

Variables

Price of Stock

Price of Stock is the price of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Symbol: P

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Price of Stock

Dividend

Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Symbol: D

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Dividend

Rate of Return

A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.

Symbol: %RoR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Return

Other Formulas to find Price of Stock

Go Present Value of Stock with Constant Growth

P = \frac{D1}{(%RoR \cdot 0.01) - g}

Other formulas in Present Value category

Go Present Value of Annuity

PVAnnuity = (\frac{p}{IR}) \cdot (1 - (\frac{1}{{(1 + IR)}^{n Months}}))

Go Present Value of Future Sum given compounding periods

PV = \frac{FV}{{(1 + (\frac{%RoR}{C n}))}^{C n \cdot n Periods}}

Go Present Value of Future Sum given Total Number of Periods

PV = \frac{FV}{{(1 + IR)}^{t}}

Go Present Value of Future Sum given Number of Periods

PV = \frac{FV}{\exp (%RoR \cdot n Periods)}

How to Evaluate Present Value of Stock with Zero Growth?

Present Value of Stock with Zero Growth evaluator uses Price of Stock = Dividend/Rate of Return to evaluate the Price of Stock, Present Value of Stock with Zero Growth is the price of a security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings when there is zero growth. Price of Stock is denoted by P symbol.

How to evaluate Present Value of Stock with Zero Growth using this online evaluator? To use this online evaluator for Present Value of Stock with Zero Growth, enter Dividend (D) & Rate of Return (%RoR) and hit the calculate button.

FAQs on Present Value of Stock with Zero Growth

What is the formula to find Present Value of Stock with Zero Growth?

The formula of Present Value of Stock with Zero Growth is expressed as Price of Stock = Dividend/Rate of Return. Here is an example- 8.75 = 35/4.5.

How to calculate Present Value of Stock with Zero Growth?

With Dividend (D) & Rate of Return (%RoR) we can find Present Value of Stock with Zero Growth using the formula - Price of Stock = Dividend/Rate of Return.

What are the other ways to Calculate Price of Stock?

Here are the different ways to Calculate Price of Stock-

Price of Stock=Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate)

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Present Value of Stock with Zero Growth Formula

​GoPresent Value of Stock with Constant Growth Formula

Present Value of Stock with Zero Growth Example

Present Value of Stock with Zero Growth Solution

Present Value of Stock with Zero Growth Formula Elements

Other Formulas to find Price of Stock

Other formulas in Present Value category

How to Evaluate Present Value of Stock with Zero Growth?

FAQs on Present Value of Stock with Zero Growth

Variable Name

GoPresent Value of Stock with Constant Growth Formula