One of the best known models to estimate the cost of equity Ke is the so called Dividend Growth model, also known as Gordon-Shapiro model, following the name of the two professors who developed it. Here we want to talk about it by considering the following questions: How can the model be used if the company (Nestlé, in our example) for which we want to determine Ke does not pay dividends? Can you indicate some of the good contributions of this model and some of its limitations in theory and/or in practice? Is it used frequently in practice?
Date Posted: 25/05/2022
Category: Finance Due Date: 25/05/2022 Willing to Pay: $35.00