首页 | 学习中心 | 注册 登录
返回列表 发帖
burning0spear

UID
223235 
帖子
459 
主题
195 
注册时间
2011-7-11 
最后登录
2016-4-21 
1# 跳转到 » 倒序看帖
打印
tT
发表于 2013-8-9 09:30 | 只看该作者

Help wanted, implied growth rate from GGM

wanted, growth, reading, required, recently
Hi guys
I just cant get my head around the working out for calculating an implied growth rate when given the P0, D0 and r.
Example, stock is $28.5, recently paid div of $2.15 and required rate is 10.5%, the answer is 2.75% but no idea how the reading got to that!
Any explanation appreciated. Thanks
收藏 分享

iteracom

Rank: 2

UID
223456 
帖子
371 
主题
11 
注册时间
2011-7-11 
最后登录
2014-8-2 
2#
发表于 2013-8-9 09:31 | 只看该作者
the formula is V = Do (1+g) / (r-g)
Plug in the values and we have:
28.5 = 2.15(1+g) / 0.105 - g
and find g
2.9925 - 28.5g = 2.15 + 2.15g
30.65g = 0.8425
therefore g = 0.02748 = 2.75%

TOP

strikethree

Rank: 2

UID
222319 
帖子
433 
主题
15 
注册时间
2011-7-2 
最后登录
2014-10-24 
3#
发表于 2013-8-9 09:31 | 只看该作者
why are you studying now?…bit early for L2 2014….

TOP

Viceroy

Rank: 2

UID
222283 
帖子
303 
主题
80 
注册时间
2011-7-2 
最后登录
2014-6-28 
4#
发表于 2013-8-9 09:31 | 只看该作者
Just look out for what is given - D0 vs. D1

TOP

SpyAli

Rank: 2

UID
223440 
帖子
306 
主题
14 
注册时间
2011-7-11 
最后登录
2014-8-6 
5#
发表于 2013-8-9 09:31 | 只看该作者
Thank you,  algebra never my strong point.

TOP

tikfed

Rank: 2

UID
223452 
帖子
418 
主题
12 
注册时间
2011-7-11 
最后登录
2014-8-7 
6#
发表于 2013-8-9 09:31 | 只看该作者
I doubt such elementary BS would show up on the exam. Unless they want the passing rate to be 80%.

TOP

返回列表