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Q: Cost of equity using the dividend growth model?
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What are the drawbacks for using Gordon growth model in dividend pricing?

Although the model's simplicity can be regarded as one of its major strengths, in another sense this is its major drawback, as the purely quantitative model takes no account of qualitative factors such as industry trends or management strategy. For example, even in a highly cash-generative company, near-future dividend payouts could be capped by management's strategy of retaining cash to fund a likely future investment. The simplicity of the model affords no flexibility to take into account projected changes in the rate of future dividend growth. The calculation relies on the assumption that future dividends will grow at a constant rate in perpetuity, taking no account of the possibility that rapid near-term growth could be offset by slower growth further into the future. This limitation makes the Gordon growth model less suitable for use in rapidly growing industries with less predictable dividend patterns, such as software or mobile telecommunications. Its use is typically more appropriate in relatively mature industries or stock-market indices where companies demonstrate more stable and predictable dividend growth patterns.


What is 39 dividend by 5 using a remainder?

7.8


How do we find remainder of two numbers by using addition subtraction multiplication and division?

The remainder of two positive integers can be calculated by first dividing one number (the dividend) by the other (the divisor) using integer division (ignoring any fractional component). Multiply this quotient by the divisor, then subtract the product from the dividend. The result is the remainder. Alternatively, while the dividend remains greater than the divisor, subtract the divisor from the dividend and repeat until the dividend is smaller than the divisor. The dividend is then the remainder.


Can 93 be divided equaly?

Yes 93 can be divided into 31 if using the 3 as the dividend


How are exponential growth patterns similar to and different from linear growth patterns?

They are similar because the population increases over time in both cases, and also because you are using a mathematical model for a real-world process. They are different because exponential growth can get dramatically big and bigger after a fairly short time. Linear growth keeps going up the same amount each time. Exponential growth goes up by more each time, depending on what the amount (population) is at that time. Linear growth can start off bigger than exponential growth, but exponential growth will always win out.