Can you help me what does (Ke)

Represent?

Im our text chapter 7

Corporate Valuation I havent seen

Ke

As per dividend growth model we know that Where D1-3, PO-$40 As per CAPM Ke-Rf+Bx (Market Risk Premium) Ke 5.2+ (0.8 x 6) Ke-10 % Now by putting the value in dividend growth model 40-3(0.10-G) 0.10-G-3/40 G-2.5 %. To get the price at the end of year 3 ie P3 P3 D4JKe-G) D4-3x (1.025)3 D4-3.231 P3- 3.231 (O.10-0.025) P3- $43.08s