D
DamienW
Member
Hi Colin,
The solution shows a formula d=r + ERP + g(real div growth)
Can you please explain how this formula is derived?
CA1 has a similar formula d+g=r+inflation+ERP hence d=r+ERP-g
I think g here refers to capital growth but not dividend growth.
Can you please explain the difference between capital growth and dividend growth? Is there a formula showing the relation between them?
Thanks
Damien
The solution shows a formula d=r + ERP + g(real div growth)
Can you please explain how this formula is derived?
CA1 has a similar formula d+g=r+inflation+ERP hence d=r+ERP-g
I think g here refers to capital growth but not dividend growth.
Can you please explain the difference between capital growth and dividend growth? Is there a formula showing the relation between them?
Thanks
Damien