Dividend growth model – assumptionsForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Dividend growth model – assumptionsThis topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts June 7, 2022 at 8:45 am #657668 justalittlelostParticipantTopics: 30Replies: 44☆☆Hey John, Could you please explain why ” investors make rational decisions” is an assumption of DGM? Thank you! June 7, 2022 at 3:08 pm #657706 John MoffatKeymasterTopics: 57Replies: 54655☆☆☆☆☆The dividend growth model assumes that the market value determined by the shareholders is based on sensible expectations as to the future dividends. In practice lots of other factors may affect the price they are prepared to pay for shares. June 9, 2022 at 7:42 am #658029 justalittlelostParticipantTopics: 30Replies: 44☆☆Okay got it. Thank you !! June 9, 2022 at 8:40 am #658053 John MoffatKeymasterTopics: 57Replies: 54655☆☆☆☆☆You are welcome.AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)The topic ‘Dividend growth model – assumptions’ is closed to new replies.