


Nonconstant Growth Stock Calculator: Introduction
The Nonconstant Growth Stock Calculator can be used to find the value of a Nonconstant or Supernormal Growth Stock.
 Dividend Fiels  Enter the Current Dividend (D0) in this field.
 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.)
 Required Return Field  Enter the Required
Return on the Stock in this
field.
 Stock Price Field  The Stock Price is
displayed in this field.
 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 popup 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.
 P_{0} Button  Press to calculate the Stock Price.
Now you are ready to use the Constant Growth Stock Calculator.
© 2002  2010 by Mark A. Lane, Ph.D.
