Can someone please write out the formula?
[D0*(1+gL)/r-gL] + [D0*H*(gS-gL)]/(r-gL) where H is the inverse of how many years the decline is spread (1/t)
No h is half the number of years, not the inverse
Um, H is the years spread / 2. Is that what you meant?
H = t/2
thank you all… I think it’s time I peaced out; even thought I said the same thing 2-days ago… Good luck to all!
H = t/2 sorry for the confusion :\
One more clarification 
H represents 1/2 the HIGH GROWTH period. Seems obvious but I’ve asked dumber questions in my day. Hope that helps at least one person…
Yes, H = half the period of high growth.
well it’s obviously not the long term perpetual growth period… t divided by infinity doesn’t work too well hahah
The trap is the first term dividend is d * long g. The second term dividend is just d and the formula.
yeah, that’s a key point… and make sure you know how to rearrange the formula to solve for growth incase everything else is given and just need g
that would be pretty annoying, MFIN. but yeah, i guess it’s fair game for them to ask that. same thing for getting the g from an RI model.