Nonconstant Growth Stock Calculator: Introduction

1. Dividend Fiels - Enter the Current Dividend (D0) in this field.
2. Growth Rate Fields - Enter the Dividend Growth Rates in these fields. The last rate entered is used as the constant or normal dividend growth rate. Leave the remaining Growth Rate fields blank. (For example if the dividends for the stock began growing at a constant rate in year 4 then the constant growth rate would be entered in the row for year four and the remaining rows would be left blank.)
3. Required Return Field - Enter the Required Return on the Stock in this field.
4. Stock Price Field - The Stock Price is displayed in this field.
5. Buttons - Press the Calculate button to calculate the price of the stock. Press the Clear to clear the calculator.
   • Div Button - Press to calculate the Current Dividend (D0) or the Next Dividend (D1). The current selection in the pop-up in the Dividend Field determines which value is calculated.
   • g Button - Press to calculate the Dividend Growth Rate.
   • r Button - Press to calculate the Required Return on the Stock.
   • P₀ Button - Press to calculate the Stock Price.

Now you are ready to use the Constant Growth Stock Calculator.