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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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