Misunderstanding P = D/(r - g)
Lecture no. 72 from the course: Crashes and Crises: Lessons from a History of Financial Disasters
Taught by Professor Connel Fullenkamp | 05 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Unpack the standard dividend discount model of stock valuation, then zero in on why investors overlooked the dividend and discount rate aspects of this equation—and the problems that arose.