Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,541.61
DanielDng$2,340.70
Visitor$830.00
Visitor$610.00
Visitor$240.00
Visitor$223.09
Visitor$210.00
Visitor$170.00
Visitor$130.00
Visitor$120.00
Visitor$120.00
Visitor$110.00
Visitor$90.00
Visitor$80.00
Visitor$66.43
Visitor$63.09
Visitor$60.00
Visitor$52.91
Visitor$50.00
Visitor$50.00
 

Question 28  DDM, income and capital returns

The following equation is the Dividend Discount Model, also known as the 'Gordon Growth Model' or the 'Perpetuity with growth' equation.

### P_{0} = \frac{C_1}{r_{\text{eff}} - g_{\text{eff}}} ###

What would you call the expression ## C_1/P_0 ##?




Copyright © 2014 Keith Woodward