Present Value of Stock with Zero Growth Solution

STEP 0: Pre-Calculation Summary
Formula Used
Price of Stock = Dividend/Rate of Return
P = D/%RoR
This formula uses 3 Variables
Variables Used
Price of Stock - Price of Stock is the price of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
Dividend - Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Rate of Return - A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
STEP 1: Convert Input(s) to Base Unit
Dividend: 35 --> No Conversion Required
Rate of Return: 4.5 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
P = D/%RoR --> 35/4.5
Evaluating ... ...
P = 7.77777777777778
STEP 3: Convert Result to Output's Unit
7.77777777777778 --> No Conversion Required
FINAL ANSWER
7.77777777777778 7.777778 <-- Price of Stock
(Calculation completed in 00.004 seconds)

Credits

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Created by Team Softusvista
Softusvista Office (Pune), India
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Verified by Himanshi Sharma
Bhilai Institute of Technology (BIT), Raipur
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19 Present value Calculators

Present Value of Deferred Annuity
​ Go Present Value of Deferred Annuity = Ordinary Annuity Payment*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01)^Deferred Periods*(Interest Rate*0.01)))
Present Value of Deferred Annuity based on Annuity Due
​ Go Present Value of Deferred Annuity = Annuity Payment Due*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01))^(Deferred Periods-1)*(Interest Rate*0.01))
Present Value of Growing Annuity
​ Go Present Value of Growing Annuity = (Initial Investment/(Rate per Period-Growth Rate))*(1-((1+Growth Rate)/(1+Rate per Period))^(Number of Periods))
Growing Annuity Payment using Present Value
​ Go Initial Payment = Present Value*((Rate per Period-Growth Rate)/(1-(((1+Growth Rate)/(1+Rate per Period))^Number of Periods)))
Annuity Due for Present Value
​ Go Annuity Due Present Value = Payment made in Each Period*((1-(1/(1+Rate per Period)^(Number of Periods)))/Rate per Period)*(1+Rate per Period)
Present Value of Future Sum given compounding periods
​ Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)
Number of Periods using Present Value of Annuity
​ Go Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period)
Present Value of Ordinary Annuities and Amortization
​ Go Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)
Present Value of Annuity with Continuous Compounding
​ Go Present Value of Annuity = Cashflow per Period*((1-e^(-Rate per Period*Number of Periods))/(e^Rate per Period-1))
Present Value of Annuity
​ Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))
Present Value of Future Sum given Number of Periods
​ Go Present Value = Future Value/exp(Rate of Return*Number of Periods)
Present Value for Continuous Compounding
​ Go Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))
Present Value Factor
​ Go Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period
Present Value of Stock with Constant Growth
​ Go Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate)
Present Value of Lumpsum
​ Go Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods
Present Value of Future Sum given Total Number of Periods
​ Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods
Present Value Continuous Compounding Factor
​ Go PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods))
PV of Perpetuity
​ Go PV of Perpetuity = Dividend/Discount Rate
Present Value of Stock with Zero Growth
​ Go Price of Stock = Dividend/Rate of Return

Present Value of Stock with Zero Growth Formula

Price of Stock = Dividend/Rate of Return
P = D/%RoR

How to Calculate Present Value of Stock with Zero Growth?

Present Value of Stock with Zero Growth calculator uses Price of Stock = Dividend/Rate of Return to calculate the Price of Stock, Present Value of Stock with Zero Growth is the price of a security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings when there is zero growth. Price of Stock is denoted by P symbol.

How to calculate Present Value of Stock with Zero Growth using this online calculator? To use this online calculator for Present Value of Stock with Zero Growth, enter Dividend (D) & Rate of Return (%RoR) and hit the calculate button. Here is how the Present Value of Stock with Zero Growth calculation can be explained with given input values -> 8.75 = 35/4.5.

FAQ

What is Present Value of Stock with Zero Growth?
Present Value of Stock with Zero Growth is the price of a security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings when there is zero growth and is represented as P = D/%RoR or Price of Stock = Dividend/Rate of Return. Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders & A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
How to calculate Present Value of Stock with Zero Growth?
Present Value of Stock with Zero Growth is the price of a security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings when there is zero growth is calculated using Price of Stock = Dividend/Rate of Return. To calculate Present Value of Stock with Zero Growth, you need Dividend (D) & Rate of Return (%RoR). With our tool, you need to enter the respective value for Dividend & Rate of Return and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Price of Stock?
In this formula, Price of Stock uses Dividend & Rate of Return. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate)
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