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Which of the following formulas is incorrect? 1) P0 = Div 1/(1 + rE) + ( Div 2 + P 2)/(1 + rE )2 2)

Which of the following formulas is incorrect?

1)

P0 =Div1/(1 +rE)+ (Div2 +P2)/(1 +rE)2

2)

Dividend Yield =Div1/P0

3)

Capital Gain Rate = (P0 -P1)/P0

4)

rE= Capital Gain Rate + Dividend Yield

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