Using equation (3.2),

A more refined approach is to estimate individual dividend payments for a few years and then assume a constant growth rate thereafter. For example, if d1, ..., dm +1 are the estimated annual dividend payments up to year m + 1 and g' is the constant growth rate of dividends thereafter:

where it has been assumed that the first dividend d1 is payable after exactly 1 year, and equation (3.2) has been applied after m years.

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