In cost of capital how can I guess that dividend given is D1 and not to be calculated as D0(1+g) in the question. I do same mistakes in these types of questions

Deepanshu · 11 Sept 2024

D(0) - current year dividend D(1) - Future dividend D(1) = D(0) + Growth (g) But , whenever the question says the net expected dividend means in future how much dividend we will receive , it's talking about future dividend So it is D(1)