PVGO (Equity Reading 25)

CFA Level II
#1

So, P0 = (E1/r) + PVGO

I was thinking that E1 = E0 (1+g)…? but since E1/r is the value of assets in place (no growth), so essentially E1=E0

correct?

So, earnings that is given in problem and NOT what is expected (since growth (g)= 0)

Could somebody comment.

#2

Correct.

#3

Yes, earning is all the years are the same.

#4

Thx guys!