This note focuses on dividend model (DDM), or the Gordon growth model, as it is sometimes called. DDM comes in many forms in practice. The note examines its role in the evaluation of the intrinsic value of equity securities, and as a model to estimate the required return on capital. It also explores the link to DDM price-to-income ratio, a widely used market a few, and sustainable growth. "Hide
by Susan Chaplinsky 11 pages. Publication Date: September 28, 1998. Prod. #: UV2453-PDF-ENG