Constant-growth dividend discount model

"However, the constant-growth formula is valid only when g is less than r. If someone forecasts perpetual dividend growth at a rate greater than investors’ required return r, then two things happen:

1. The formula explodes. It gives nutty answers."


It’s clear indication of how ill I am right now that when I read that I found it far too entertaining and now, over an hour later, I just want to stab the person who wrote it with that Stiglitz book.

When I grow up can I be a technical market analysis analyst? They do nothing but play with scatter graphs that have no correlation what so ever.
Also, I’m not convinced that this Beechams hot lemon stuff isn’t making me worse.

Lovely things while I’m ill...

The fabulous lanithro has drawn me a Sad Ludwig in the Snow in celebration of International Narsus Week.
He looks marvellously perturbed and melancholy. Probably wondering if he’s revised enough pernickety detail about capital investment decisions and worrying over whether or not Eduard will demand the formula for Total Shareholder Return in all its algebraic glory in the morning or some such. Because Eduard does rather like formulae, almost as much as Orpherus likes to sleep and Naoji likes to dress Ludwig up as a Japanese girl. It’s a hard life being a Ludwig after all.


I’m also still horrifically flu-ish to the point where I’m sleeping more than anything else so I’m off to finish my not quite miscellaneous soup, it’s beef and tomato with a little bit of basil and is actually rather nice, and go lie down with a wrist-support on. I suspect that I may just pass out by tomorrow evening anyway.
And before I forget, Beechams tastes far too much of honey to the point where you want to throw up and Lemsip tastes like powered lemon which isn’t any better.