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E(r) = [D0(1+g) / P]/g
What is this formula? |
Investors' Expected Return.
Part of the dividend-growth model analysis. |
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E(r) = [D0(1+g) / P]/g
What is "E(r)"? |
E(r) = expected return
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E(r) = [D0(1+g) / P]/g
What is "D0"? |
D0 = dividend at the present time
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E(r) = [D0(1+g) / P]/g
What is "g"? |
g = growth of the dividend
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E(r) = [D0(1+g) / P]/g
What is "P"? |
P = price of the stock
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