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Where does the 1/(1+r)^3 come from in this constant-growth DCF formula? It doesn't indicate anywhere in my textbook P3P0=r0.08DIV4=1+rDIV1+(1+r)2DIV2+(1+r)3DIV3+(1+r)31r0.08DIV4=1+r0.50+(1+r)20.60+(1+r)31.15+(1+r)31r0.081.24
Where does the 1/(1+r)^3 come from in this constant-growth DCF formula? It doesn't indicate anywhere in my textbook
P3P0=r0.08DIV4=1+rDIV1+(1+r)2DIV2+(1+r)3DIV3+(1+r)31r0.08DIV4=1+r0.50+(1+r)20.60+(1+r)31.15+(1+r)31r0.081.24Step by Step Solution
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