Valuing Common Stocks
Capitalization Rate can be estimated using the
perpetuity formula, given minor algebraic
manipulation.
g
P
Div
r
r g
Div
P
= = +
−
= =
0
1
1
Capitaliza tion Rate 0
Valuing Common Stocks
Capitalization Rate can be estimated using the
perpetuity formula, given minor algebraic
manipulation.
g
P
Div
r
r g
Div
P
= = +
−
= =
0
1
1
Capitaliza tion Rate 0