Kaplan Schweser reading was giving me a hard time with this.
When going from the traditional H Model equation to rewriting in terms of r (let’s say we don’t know the required rate of return), I don’t really see how they got to the new equation. This is page 117 of Schweser book 3.
I would think simply multiplying each side by (r-G long term) would allow an easy plug and go, but the math doesn’t seem to work out.
man my books are still en route… Going from the traditional model in the CFAI text you can simply multiply by (r-gL) and do some rearranging to solve for r. what is their final result?