What 5 concepts are covered in the Dividend Discount Model Calculator?
discount
the amount by which the market price of a bond is lower than its principal amount due at maturity
dividend
a reward paid to the shareholders for their investment in a company's equity
dividend discount model
A formula used to value a stock based on the present value of dividends P = D/(i - k) where i is the interest rate and k is the growth rate of dividends
interest
payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
present value
the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest. PV = FV/(1 + i)n where I is the interest rate per period, PV = Present Value, and FV = Future Value
