The los says we should be able to calculate r from h-model or 2 stage ddm. Are you guys doing algebraic manipulation on the exam day, or memorizing the formula?? this is ridiculous. I understand how to calculate value from the H model intuitively but now to calculate r … dont you think its a bit too much.
eh, you just plug it in and solve for ‘r’
it is really simple if you look at the equation and see that r is present only on the denominator. The other part is, whether it is the part with the H/2 part or the other lower growth fixed portion - the denominator is always (r - gL) - so yes, I do the algebraic manipulation and prefer to do that, instead of going the formula mugging route. other approach - this has 3 choices - once you have set up the basic equation - plug and chug with the choices till you get the right ans. is also an approach that is very feasible.
sharp, i know that. but it takes more than 3 minutes. yah i hope i can do the plug in 3 mins.