What is the current value of the stock using the [Constant Growth Model of the] Dividend Discount Model?

The current value of the stock using the Dividend Discount Model is calculated by taking into account the expected dividend payments per share and a required rate of return. This can be determined by using the equation: CV = D1/(R-g), where CV is the current value, D1 is the expected dividend payment per share, R is the required rate of return and g is an estimate for long-term growth in dividends. For example, if D1 equals $2.50, R equals 10% and g equals 5%, then CV would be equal to $25 ($2.50/(0.10 – 0.05)).