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5 Cards in this Set

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E(r) = [D0(1+g) / P]/g

What is this formula?
Investors' Expected Return.

Part of the dividend-growth model analysis.
E(r) = [D0(1+g) / P]/g

What is "E(r)"?
E(r) = expected return
E(r) = [D0(1+g) / P]/g

What is "D0"?
D0 = dividend at the present time
E(r) = [D0(1+g) / P]/g

What is "g"?
g = growth of the dividend
E(r) = [D0(1+g) / P]/g

What is "P"?
P = price of the stock