**Could you please show me in basic formula how I can find 'g' formula. And how I can find D1. I tried it but I feel it is wrong if I'm suppose to use the given formula within the question..... P₀ = D₁ / (k - g)**

9.1 The Constant-Growth-Rate Discounted Dividend Model, as described equation 9.5 on page 247, says that:

P₀ = D₁ / (k - g)

A. rearrange the terms to solve for:

i. g; and

g = r*ri

g = rate of reinvested earnings X rate of future return

ii.D_1.

D_{1 =} D_{2 / (1+g)}

As an example, to solve for k, we would do the following:

1.Multiply both sides by (k - g) to get: P₀ (k - g) = D₁

2.Divide both sides by P₀ by to get: (k - g) = D₁ / P₀

3.Add g to both sides: k = D₁ / P₀ + g