Equity: RI: formula for single stage model always, single

JonnyKay

P0=B0+(ROE-r)/(r-g),

why here not use : P0=B0+B0*(ROE-r)*(1+g)/(r-g)
if DDM model always multiply div at time zero by (1+g), why here we don't? Thanks.

President1988

bcos B0 * ROE = Next period earnings... E1
and E1 * b = D1

CP

stalkey

very clear now, thanks.

cpk123 Wrote:
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> bcos B0 * ROE = Next period earnings... E1
> and E1 * b = D1