Sfm dividend duubt

D is multiplied with (1+g) if last years dividend is given because dividend should be future and not past

Originally posted by : CA Ashwani Narnoli
	D is multiplied with (1+g) if last years dividend is given because dividend should be future and not past

Agree.

D1=D(1+g)

That's why if D1 is given in the sum than no need to multiply it by (1+g)

Since D1 stands for dividend in year 1..................... it means in the next year of calculation.

if question says next year dividend/expected divident .......... in that case it will not be multiplied with (1 + growth rate)

it depends upon information of question... if we assume the given dividend as dividend of last year then we have to multiply D(1+G) to find out dividend at the end of current year & if we assume or as per instruction of question given dividend is of current year ..then no need to multiply.. directly apply the formula to obtain present value to all future dividend