Differential Growth Dividend Model
Forecasted Dividends grow at a constant rate, g1 for a certain number of years and then grow at a second growth rate, g2.
Example: The dividend of a company was $1 yesterday. During the next 18 years the dividend will grow at 14% per year. After that the dividend will grow at 10% per year. What is the price of the stock if the required return is 15%?