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Law Dictionary Word Under G

Posted by Muhammad Atif Saeed | Thursday, 12 January 2012 | Posted in ,

Garnishee order a court order to a third party who owes money to a judgement debtor to pay the money to the judgement creditor.

General damages damages a court will give to compensate for a wrong done without needing specific proof that damage has been done to the claimant ('plaintiff' before April 1999). The court presumes that losses or damage exist such as in a libel case.

General meeting a meeting of the members of a company to make decisions about the company. 

Grant proof that you are entitled to deal with a dead person's estate. The grant is issued by the Probate Registry.

Grant of probate a certificate proving that the executors of a will are entitled to deal with the estate. When a person dies the executors fill in various forms for the Probate Registry. The forms are then sent to the registry together with the will and the death certificate. A registrar examines all the documents and, once satisfied with everything, issues the grant of probate.

Grievous bodily harm intentionally causing serious physical harm to someone. This is more serious than actual bodily harm.

Guarantee a promise by a person (the guarantor) to repay a debt owed by a second person if the second person fails to repay it. For example, a guarantee is sometimes required by a bank before it will lend money to a customer.

Guarantee company a company whose members only have to pay the amount they have agreed to contribute, if the company has to be wound up. They do not have to pay in extra money if there is not enough to pay all the company's debts.

Guarantor a person or organisation that promises to pay a debt owed by a second person, if the second person fails to repay it.

Guardian a person appointed formally to look after the interests of a child, or of someone who is not capable of looking after their own affairs.

Guilty - a court's verdict that the person charged with a crime committed it.

Gordon Growth Model

Posted by Muhammad Atif Saeed | Wednesday, 11 January 2012 | Posted in , ,

A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. Given a dividend per share that is payable in one year, and the assumption that the dividend grows at a constant rate in perpetuity, the model solves for the present value of the infinite series of future dividends.
Gordon Growth Model


Where:
D = Expected dividend per share one year from now
k = Required rate of return for equity investor
G = Growth rate in dividends (in perpetuity)

explains 'Gordon Growth Model'


The Gordon growth model is a type of dividend discount model used to value companies expected to grow at a constant rate forever. Most valuation models forecast growth for a certain time period before reverting to a Gordon growth model to estimate the ending value.

Because the model simplistically assumes a constant growth rate, it is generally only used for mature companies (or broad market indices) with low to moderate growth rates.

Strengths:
  • Especially useful for valuing stable-growth dividend paying companies
  • Useful for valuing broad-based equity indices
  • Simplicity and clarity
  • Helpful in understanding relationships between value, growth, required return and payout ratio
  • Useful for estimating expected rate of return
Weaknesses:
  • Output highly sensitive to assumptions for growth rate and required return
  • Not practical for valuing non-dividend paying companies
  • Not practical for valuing dividend paying stocks with unstable growth characteristics

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I am doing ACMA from Institute of Cost and Management Accountants Pakistan (Islamabad). Computer and Accounting are my favorite subjects contact Information: +923347787272 atifsaeedicmap@gmail.com atifsaeed_icmap@hotmail.com
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