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In financial economics, the dividend discount model (DDM) is a method of valuing the price of a company's capital stock or business value based on the assertion that intrinsic value is determined by the sum of future cash flows from dividend payments to shareholders, discounted back to their present value.
Compound annual growth rate (CAGR) is a business, economics and investing term representing the mean annualized growth rate for compounding values over a given time period. [1] [2] CAGR smoothes the effect of volatility of periodic values that can render arithmetic means less meaningful. It is particularly useful to compare growth rates of ...
Often the independent variable is time. Described as a function, a quantity undergoing exponential growth is an exponential function of time, that is, the variable representing time is the exponent (in contrast to other types of growth, such as quadratic growth). Exponential growth is the inverse of logarithmic growth.
The function also adheres to the sigmoid function, which is the most widely accepted convention of generally detailing a population's growth. Moreover, the function makes use of initial growth rate, which is commonly seen in populations of bacterial and cancer cells, which undergo the log phase and grow rapidly in numbers. Despite its ...
SPM is derived from the compound interest formula via the present value of a perpetuity equation. The derivation requires the additional variables X {\displaystyle X} and R {\displaystyle R} , where X {\displaystyle X} is a company's retained earnings, and R {\displaystyle R} is a company's rate of return on equity.
This "Rule of 70" gives accurate doubling times to within 10% for growth rates less than 25% and within 20% for rates less than 60%. Larger growth rates result in the rule underestimating the doubling time by a larger margin. Some doubling times calculated with this formula are shown in this table. Simple doubling time formula:
The formula can be read as follows: the rate of change in the population (dN/dt) is equal to growth (rN) that is limited by carrying capacity (1 − N/K). From these basic mathematical principles the discipline of population ecology expands into a field of investigation that queries the demographics of real populations and tests these results ...
Logistic function for the mathematical model used in Population dynamics that adjusts growth rate based on how close it is to the maximum a system can support; Albert Allen Bartlett – a leading proponent of the Malthusian Growth Model; Exogenous growth model – related growth model from economics; Growth theory – related ideas from economics