cost pf equity

160 views 4 replies
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
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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