Put some key features of gorden model regarding relevant dividend policy

Assumptions of Gordon’s Model The firm is an all-equity firm; only the retained earnings are used to finance the investments, no external source of financing is used. The rate of...

According to the Gordon’s Model, the market value of the share is equal to the present value of future dividends. It is represented as: P = [E (1-b)] / Ke-br Where, P = price of ...

The Gordon’s Model, given by Myron Gordon, also supports the doctrine that dividends are relevant to the share prices of a firm. Here the Dividend Capitalization Model is used to s...