Gordon growth Model.

http://en.wikipedia.org/wiki/Fed_model

 And how do corporate bonds (with a yield above the government bond yield) fit into this picture? A number of assumptions need to be made to go from the constant growth dividend discount model to the Fed model. Estrada starts with the Gordon growth model

where P is the current price and D the current dividend, G the expected long-term growth rate,  the risk free rate (10-year treasury notes) and RP the equity risk premium.