Question

Bar Which of the following formulas is INCORRECT? qa. Pr=E- g) Div N+1 O B. Div = EPS, * Dividend Payout Rate OC. TE = (Div/
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Answer #1

Cost of equity using Gordon growth model , (Div t / P0) + g

Dividend in any time t = EPS t * Dividend pay out rate

The formula for Pn = Div N+1 / (re - g) if the growth rate is constant

So A is incorrect

Answer is A)

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