Valuing equity forward contracts

[navman]

I am trying to understand the formula for valuing equity forward contracts:
V (long position)t = (St - PVDt) - (FP/(1+rf)^(T-t)
Now I understand why when you calculate the FP you need to adjust for dividends because this offsets your cost of borrowing the underlying asset.
But why do you subtract PVD from the stock price?

 

[cpk123]

dividends do not belong to you the buyer of the contract. they belong to the owner of the stock, the seller of the contract.

 

[navman]

Thanks for that. That make sense now