Hello everyone! I would like to understand why when they ask you to value the stock using DDM two years from now, the response uses 3 periods. It s pretty confusing, here it goes
a firm has constant growth of 7%, just paid a divident of 6.25. If r is 12% what will the stock sell for 2 years from now. How do i know this requieres a 3 period ?
thank you in advance !