Can someone please write out the formula?作者: chaojimali 时间: 2011-7-13 16:33
[D0*(1+gL)/r-gL] + [D0*H*(gS-gL)]/(r-gL)
where H is the inverse of how many years the decline is spread (1/t)作者: brainsX 时间: 2011-7-13 16:33
Um, H is the years spread / 2. Is that what you meant?作者: OmarAdnan 时间: 2011-7-13 16:33
H = t/2
sorry for the confusion :\作者: xilinx_altera 时间: 2011-7-13 16:33
One more clarification :-) H represents 1/2 the HIGH GROWTH period. Seems obvious but I've asked dumber questions in my day. Hope that helps at least one person...作者: WarrenB1 时间: 2011-7-13 16:33
Yes, H = half the period of high growth.作者: yospaghetti 时间: 2011-7-13 16:33
well it's obviously not the long term perpetual growth period.... t divided by infinity doesn't work too well hahah作者: llxx 时间: 2011-7-13 16:33
The trap is the first term dividend is d * long g. The second term dividend is just d and the formula.作者: 5566 时间: 2011-7-13 16:33
yeah, that's a key point...
and make sure you know how to rearrange the formula to solve for growth incase everything else is given and just need g作者: Analyze_This 时间: 2011-7-13 16:33
that would be pretty annoying, MFIN. but yeah, i guess it's fair game for them to ask that. same thing for getting the g from an RI model.
