Shares and growth rate

[i am a CA student]

Dear,

the formula which Mr. Amir used is the methematically derived form of present value formula.

If I start with the formula you used I will derive the formula which Mr. Amir used.

S=P*(1+i)^n

S/P=(1+i)^n

multiply both sides by power 1/n.
(S/P)^1/n = {(1+i)^<font color="red">n</font id="red">*1/<font color="red">n</font id="red">}

now the "n" will be cancelled out and,

(S/P)^1/n = (1+i)^1

now power 1 means same base, hence;

(S/P)^1/n = (1+i)

{(S/P)^1/n} - 1 = i.

hence,

{(Dn/Do)^1/n - 1} = i(which is growth rate)


Regards,