computingRwithHmodel: Calculates the required rate of return on equity using two...

In stockAnalyst: Equity Valuation using Methods of Fundamental Analysis

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, [e-mail]

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)

stockAnalyst documentation built on Sept. 13, 2022, 5:07 p.m.