Cost of equity?

Does cost of equity = (Div (1+G)/Price) + G? I saw this as an answer for a question.

yes. this is essentially a rearrangement of the formula. r = D0(1+g) / P0 + g r - g = D0(1+g)/P0 P0 = D0(1+g)/(r-g)

yes if you rearrange the formula…it’s coming from P = D*(1+G) / (r-G) that’s the value of a share given dividends today

Wow, that was fast. You guys are up at 7:10 on a Sunday morning. thanks. :slight_smile:

actually…it’s 3:15 in my time zone…that’s pm

dude, you won’t believe this. i was in sound sleep. There’s woodpecker pecking my house at 6:00. I was literally woke up by an early bird. :slight_smile: So I decided to get up to do some study. Seems to be a good sign…