Valuing Common Stocks
The formula can be broken into two parts.
Dividend Yield + Capital Appreciation
Expected Return = = +
−
r
Div
P
P P
P
1
0
1 0
0
Valuing Common Stocks
The formula can be broken into two parts.
Dividend Yield + Capital Appreciation
Expected Return = = +
−
r
Div
P
P P
P
1
0
1 0
0