7 ms·
I would like to see this metric but where instead of substraction they should use division.
by dpc_pw 6y ago
I would like to see this metric but where instead of substraction they should use division.
- shabda 6y agoSubtraction makes sense here as you are trying to find the excess yield of equity over dividend. A yield of bond: 0.5, equity 4 vs bond: 1, equity: 4.5 doesn't change his argument, but changes the ratio significantly.