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Div Model vs Div Growth Model

Forums › Ask CIMA Tutor Forums › Ask CIMA F3 Tutor Forums › Div Model vs Div Growth Model

  • This topic has 0 replies, 1 voice, and was last updated 5 years ago by nymberirua.
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  • September 17, 2019 at 1:36 pm #546415
    nymberirua
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    • Topics: 2
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    When do I use the Div Model and when do I use the Div Growth model to attain the Cost of Equity? My question bank is using them interchangeably and I am a bit confused. Sometimes they just use D0/P0 even though they talk about growth and other times they account for the growth and use D1/P0 +G which i understand is the same as D0*(1+G)/P0

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