So how do we determine these future dividends? The way we do it is we build a model, and the most basic model we can build is a model where the dividends grow at a constant rate over time. So this model is the most famous model for pricing equity. So D1. Now, we don't know what dividends are going to be for sure. This is actually the expected dividend. Next year. D2, we're just going to assume that D2 is equal to D1 times 1 plus g. g for growth rate. Well, nothing too complicated there. But the important thing is that D3 is also D2 times the growth rate. And D4 is D times the growth rate, and so on and so forth. So we see that D3 is really D1 times 1 plus g-squared plus D4. And D4 is really D1 times 1 plus g-cubed. So if we think about the cash flows on this equity, we get D1 over 1 plus r, plus D1 times 1 plus g over 1 plus r-squared, plus D1 over 1 plus g-squared over 1 plus r-cubed, and so forth and so on. And we already know what the formula is. It's the formula for the growing perpetuity. This works as long as r is greater than the growth rate of dividends. We'll do a quick example. So assume the dividends per share are expected to be $3 dollars next year. After which they will grow at a growth rate of 10%. And the discount rate is 15%. The price is D1 over r minus g, or 3 over 0.15 minus 0.10. Or $60, that's the price per share if $3 is the dividend per share. So you might say that this formula is not good for all companies because some companies, for instance, might not pay dividends right now, and might pay dividends in the future. Well, that's true, and for that, you can use our formula for the delayed perpetuity. So you may recall that from the present value clip. You might say well, maybe they grow quickly at first and then slowly in the future. Well, the present value formulas can accommodate that, too. You have a phase for fast growth and then a terminal phase for slow growth. I'm not going to work out the details here, you can see them in the notes. But the important thing to know is that we're just applying the principle of present value.