Two stage dividend discount valuation

Hello,

On the exam, would we have to find the present value (based upon DDM) of a finite dividend discount valuation? this calculation can take a while especially if its for 10 or so periods.

Thanks,

If they give you a 2-stage model, the first stage will be 2 or 3 periods, with 2 being a lot more likely than 3. If you can do it for 2, you can do it for 10.

Are there stage - wise required returns ‘r’ too? I cannot recall having come across them in discounted dividend valuation chapter.

For a multi-stage DDM I’d imagine that you’ll have a single required rate of return.

Thanks. Why would it then be a stage wise different required return in other valuation models like free cash flows et al? (They don’t even call it r(s) and r(l). )