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

Dividend Discount Model calculates the current stock value by calculating the required return rate and the dividend payment per share. The equation CV = R-g can be used to determine the value of the stock. CV is its current value. D1 represents the expected dividend payments per share. 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)).