It was late last night when I tried to use the Gordon Growth model to solve for implied growth rate given the other variables. My arithmetic was not working very well, so is this correct: V0 = D1/(r-g) leads to g = (r-D1)/V0

Nopes, that’s incorrect. Here’s the real deal V0 = D1/(r-g) V0(r-g) = D1 (r-g)= D1/V0 (g-r)= -D1/V0 g = r - (D1/VO)

trek VO = D1/(r-g) so r-g = D1/Vo so g = r - D1/Vo So if next year’s dividend is 1.00$ Price is 50$ and the expected rate of return is say 8% g = .08 - 1/50 = .08 - .02 = .06 = 6%

Thank goodness I have you folks. For some reason I was thinking (r-D1)/Vo was the same as r - d1/Vo.