Dividend Yield & Growth (DDM) implementation

Binding contract

This record describes what an executable surface must bind and validate. It does not claim that a public calculator, package, or production route is deployed.

Record owner

Guth Instruments

Lifecycle

verified-clean

Evidence ID

t4-212

Effect

Computation or source lookup only

Input and validation requirements

The specification provides no stated rejection behavior for r = g or r < g. Literal arithmetic produces an undefined result at r = g and an economically invalid negative value when r < g. The dividend D0-versus-D1 convention is also unspecified, producing different fair values.

Required corrections

No binding erratum is attached to this unique-name record. Implementers must still preserve the declared units, domain, and failure behavior.

Inspectable interface fixture

The sample below is evidence for interface and validation tests, not a production implementation.

{
  "inputs": {
    "price": 50,
    "annual_div": 2,
    "dividend": 2,
    "growth_rate": 0.03,
    "required_return": 0.08
  },
  "expected_outputs": {
    "yield_percent": 4,
    "ddm_fair_value": 40
  },
  "working": "Yield = annual_div / price = 2 / 50 = 0.04. Convert to percent: 0.04 * 100 = 4%. Gordon value = D1 / (r - g) = 2 / (0.08 - 0.03) = 2 / 0.05 = 40."
}

Other records

Sources and evidence

These pointers bind the page to evidence. They do not grant authority or collapse verification into deployment.

• VERIFIED_LEDGER.json
• evidence-tranche4/tranche4-results.json