P0 = D0 (1 + g)/(rs - g)
where P0 is how much someone would pay for a stock, rs is how much return you require from it, and g is the expected increase in the stock's dividends.
What makes this interesting is that financial experts say that no stock can have g > rs, or growth greater than requirements because then it would be infinitely precious...
If only the financial experts knew that there is such a g who always provides more than rs:) Therefore, it follows from the above equation, that holding devotee shares in AOL is infinitely precious:)
Who says studies can't be fun!
6 comments:
For non-AOL people, G stands for our beloved Guruji :D
Yes,adding Guru angle to it definitely does makes it more interesting! :)
LOL :-) Yup sabse bada Guru ! No coincidence that Guru (Jupiter) is the largest planet.
JGD
@Sid: yes sir
@RR : thats another cool observation
Indeed!! :) :) :) :) :) :) :)
Good one dude! Really really liked it! Also your posts are very inspiring. How've you been?I got a shock when I heard you were off to the states but am glad that you DID leave. So many talk few walk :). Take care and write in. My email is abhilash.vithlani@gmail.com. I do send you some forwards every now and then, hope you have been recieveing them. Take care. JGD
BTW: Hope you're eating lots of Ben & Jerry's and Cold Stone.Remember our times at Corner house and DBC :)
bro i would not trade those sweet memories for anything...am glad to hear that you are teaching part 1 now and wish you the best in the days to come
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