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Good day Sir,
In the formula of growth,
g = b*r
Can we use b = 1-dividend payout ratio ?
for e.g
g = (1-40%)*ror we will have to work for ‘b’ separately?
Thanks in advance.
What you have written is fine (except ‘b’ should be 1 – 0.40, which is 0.6 (or 60%).)
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