Finance Test 3 Prep - t = D t 1(R – g P t = P(1 g t R = D 1/P o g R = Dividend Yield Capital Gains Yield PAGE 241

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Current Stock Price = D 1 /(1+R) 1 + D 2 /(1+R) 2 + D 3 /(1+R) 3 Zero Growth: Current Price = D/R Constant Growth: Current Price = D 1 /(R – g) Constant Growth at time “t”: P
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Unformatted text preview: t = D t+1 /(R – g) P t = P (1 + g) t R = D 1 /P o + g R = Dividend Yield + Capital Gains Yield PAGE 241...
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This note was uploaded on 05/26/2011 for the course FINA 3000 taught by Professor Laplante during the Spring '08 term at University of Georgia Athens.

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