iteracom

pfcfaataf Wrote:
-------------------------------------------------------
> it is still ROE = E1/BV0
>
> V0 = B0 + (ROE-r)/((r-g) = B0 x (1 +
> (ROE-r)/((r-g))
>
>
> (1 + (ROE-r)/((r-g)) = (r - g + ROE-r)/(r-g) =
> (ROE - g)/(r-g) = E0/BV0(1+g)(1-b)/(r-g) if you
> want
>
> and you dont really need any calculations, just
> think about B as you initial investment and E as
> your interest/coupon/yield that you receive from
> the initial investment at the end of a period and
> you calculate holding period yield (or how it is
> called) => this is ROE
>
> there are of course some assumptions (to simplify
> it).


there was missing B0 in the middle of :
V0 = B0 + B0 x (ROE-r)/((r-g) = B0 x (1 + (ROE-r)/((r-g))

I am finished, I need to recharge myself.

speak to you tomorrow or today