Why can’t you use this formula
Re = D1/P + G
why do you have to use this formula
Vo = do(1 + G) / (re - G )
Why can’t you use this formula
Re = D1/P + G
why do you have to use this formula
Vo = do(1 + G) / (re - G )
What is that first formula?
I think the first formula is simply the GGM Formula switched around algebraically. Don’t waste the brain space on that first formula in my opinion.
If you’re asked for the Required Return using GGM, just plug in the middle answer choice on exam day into the GGM or use algebra on the GGM to solve.