## Enter 3 items below

<-- Dividend
% <-- Yield Rate
% <-- Div. Inc.

##### How does the Dividend Discount Model Calculator work?
Free Dividend Discount Model Calculator - This calculator determines the present value of dividends using the Dividend Discount Model.
This calculator has 3 inputs.

### What 1 formula is used for the Dividend Discount Model Calculator?

P = D/(i - k)

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##### 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