| computingRwithGGM {stockAnalyst} | R Documentation |
Calculates Required Rate of Return using the Gordon Growth Model.
Description
Under the assumption of efficient prices, the Gordon growth model has been used to estimate a stock’s required rate of return, or equivalently, the market-price-implied expected return (Jerald E. Pinto, 2020).
Usage
computingRwithGGM(divN1, g, spNot)
Arguments
divN1 |
A number. |
g |
A number. |
spNot |
A number. |
Details
According to information provided by Jerald E. Pinto (2020), the method computingRwithGGM is developed for computing Required Rate of Return using the Gordon Growth Model for the values passed to its three arguments. Here, divN1 is dollar value of the dividend in one year, g is dividend growth rate, and spNot is current share price.
Value
Input values to three arguments divN1 , g and spNot.
Author(s)
MaheshP Kumar, maheshparamjitkumar@gmail.com
References
Pinto, J. E. (2020). Equity Asset Valuation (4th ed.). Wiley Professional Development (P&T). https://bookshelf.vitalsource.com/books/9781119628194
Examples
computingRwithGGM(divN1=2.363,g=0.055,spNot=56.60)