According to information provided Jerald E. Pinto (2020), the method computingRwithHmodel is developed to compute the required rate of return on equity using two stage H-Model for the values passed to its six arguments.Here, divNot is dollar value of the current dividend , spNot is current share price, n is number of years of super-normal growth period, H is which is one-half of n (that is the length of the super-normal growth period), gS is initial short-term dividend growth rate, and gL is normal long-term dividend growth rate after Year 2H (that is n).
References
Pinto, J. E. (2020). Equity Asset Valuation (4th ed.). Wiley Professional Development (P&T). https://bookshelf.vitalsource.com/books/9781119628194