| computingRwithHmodel {stockAnalyst} | R Documentation |
Calculates the required rate of return on equity using two stage H-Model.
Description
Calculates the required rate of return on equity using two stage H-Model.
Usage
computingRwithHmodel(divNot, spNot, n, H, gS, gL)
Arguments
divNot |
A number. |
spNot |
A number. |
n |
A number. |
H |
A number. |
gS |
A number. |
gL |
A number. |
Details
According to information provided Jerald E. Pinto (2020), the method computingRwithHmodel is developed to compute the required rate of return on equity using two stage H-Model for the values passed to its six arguments.Here, divNot is dollar value of the current dividend , spNot is current share price, n is number of years of super-normal growth period, H is which is one-half of n (that is the length of the super-normal growth period), gS is initial short-term dividend growth rate, and gL is normal long-term dividend growth rate after Year 2H (that is n).
Value
Input values to six arguments divNot , spNot , n, H, gS and gL.
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
computingRwithHmodel(divNot=1,spNot=20,n=10,H=10/2,gS=0.10,gL=0.06)