Endnotes
Chapter 1
1. Irving Fisher, The Nature of Capital and Income (New York: Augustus M. Kelley, 1965 reprint of 1906 original), p. 188.
2. The DCF formula is: PV = E × (1 + G)/(R – G) where PV is present value (or price you would be willing to pay), E is profits, G is the long-term growth rate of those profits, and R is the discount rate. Make the growth rate 0 (zero), and the formula simplifies to PV = E/R. If you move the E over, the P/E equals 1 over the discount rate.
3. FactSet Research Systems and Federated Investors, 2012, as of November 27, 2012. Out of 3,726 securities, 52.5% were without dividends. A similar analysis of the Russell 3000 Index showed 50.9% without dividends.
4. FactSet Research Systems and Federated Investors, as ...
Get The Dividend Imperative: How Dividends Can Narrow the Gap between Main Street and Wall Street now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
