ke =D1/P0+g
can any one explain me this formula pllzz
especially why that g is added when d1 i.e. expected dividend is there
plzzz tell me the logic behind it
Thanking you in advance
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cost pf equity
Replies (4)
can u call me...at 7715089180
The right answer is the expected price appreciation yiled from a common stock
G Assumes that dividends will grow at the constant rate
its difficult to understand this concept on messeage...kindly call if possible
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