Criticism of Gordon’s Model In Dividend Theories:
Gordon’s model consists of the following important criticisms:
1. Gordon model assumes that there is no debt and equity finance used by the firm. It is not applicable to present day business.
2. Ke and r cannot be constant in the real practice. According to Gordon’s model, there are no tax paid by the firm. It is not practically applicable.
Gordon’s model consists of the following important criticisms:
[Post Image Courtesy of JK1991 at FreeDigitalPhotos.net]
1. Gordon model assumes that there is no debt and equity finance used by the firm. It is not applicable to present day business.
2. Ke and r cannot be constant in the real practice. According to Gordon’s model, there are no tax paid by the firm. It is not practically applicable.
Criticism of Gordon’s Model In Dividend Theories
![Criticism of Gordon’s Model In Dividend Theories]()
Reviewed by Blog Editor
on
Monday, June 26, 2017
Rating:
Posts
Hmm it appears like yοur website ate my fiгѕt comment (it
ReplyDeletewas extremely long) so I guess Ι'll jսѕt sum it ᥙρ what Ӏ had writtеn and say, I'm thorouɡhly enjoying уour
blog. I toߋ am an aspiring blog writer but I'm ѕtill neԝ to
everｙthіng. Do you have аny suggestions for inexperienced blog writers?
I'd genuinely ɑppreciate іt.