Documents Chapter 07 Stocks & Valuation. Value Stock = + + + D1D1 D2D2 D∞D∞ (1 + r s ) 1 (1 + r s ) ∞ (1...

Slide 1 Chapter 07 Stocks & Valuation Slide 2 Value Stock = + + + D1D1 D2D2 D∞D∞ (1 + r s ) 1 (1 + r s ) ∞ (1 + r s ) 2 Dividends (D t ) Market interest rates Firm’s…