![Image 38](https://www.vskills.in/lms/wp-content/uploads/2016/06/Image-38-4.jpg)
Where:
V = the value
D1 = the dividend next period
r = the required rate of return
For example:
Because every dividend is the same we can reduce this equation down to:
![Image 40](https://www.vskills.in/lms/wp-content/uploads/2016/06/Image-40-3.jpg)
Where:
V = the value
D1 = the dividend next period
r = the required rate of return
For example:
Because every dividend is the same we can reduce this equation down to: