 In this section, I will explain how the implied dividends can be calculated. So, we can use this formula to calculate the value of the implied dividend and that is symbolized by a capital D with a bar at the top of it and in this, you are taking the spot price, you have your expected rate of return and then we have got the forward price and to explain this, I am going to use an example. Suppose our spot price of a certain asset that is $100 and your rate of return that is $0.08 it can be the risk premium also and suppose your future price you know that too and that is $103 so you will plug these values into your formula and then you will get the value of the dividend and you will get to know that for a certain spot price and future price and given risk premium, you will be able to get the implied dividend will be $5 so, in this way, you can easily remove the value of your implied dividend from this formula.