What is the excel formula that calculates this?

Calculating Stock Prices

Astock = $100 on Jan 1

Astock = $120 on Sept 1

Astock pays a monthly dividend of $3/mo.

Jan 1 - Sept 1 = 8 mo x $3 = .$24 Dividend

Expected Return = (Dividends Paid + Capital Gain) / Price of Stock

Price of Stock A is currently $100.00 per share or (P0).

Dividends are expected to be $3.00 per share (Div).

The price of Stock A is expected to be $125.00 per share in one year's time (P1).

Therefore our capital gain is expected to be $125.00 - $100.00 or $25.00 per share.

Expected Return, or R = ($3.00 + $25.00) / $100.00 = 8.0%???

We can now use this expected return to calculate the price of a stock in the same risk class as Stock A using the following formula:

Stock Price = (Dividends Paid (Div) + Expected Price (P1)) / (1 + Expected Return (R))

Proving this calculation with our example information above, we have:

Stock Price = ($3.00 + $105) / (1 + 0.08) = $108.00 / 1.08 = $100