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The Validity of the Dividend Growth Model – during the corona virus epidemic

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › The Validity of the Dividend Growth Model – during the corona virus epidemic

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Avatarf6ali.
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  • May 7, 2020 at 1:58 pm #570249
    Avatarl33so1998
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi all, hope you’re well. I have been thinking that during this corona virus epidemic a lot of companies are suspending their dividend payments and am trying to understand in detail how this will effect the validity of the Gordon Growth Model – will it still hold true? Or instead will other valuation techniques such as Residual Income and Economic Valuation need to be considered?

    Very grateful if anyone has an opinion on this they’d like to share.

    Thanks,

    😀

    May 9, 2020 at 2:14 pm #570405
    Avatarf6ali
    Member
    • Topics: 10
    • Replies: 341
    • ☆☆☆

    Hi,

    Gordon’s Growth Model is not part of Financial Reporting syllabus, it is part of Financial Management syllabus.

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