Chapter 13 The Cost of Capital

Therefore, the ex div share price = 140c (cum div share price) – 8c (dividend) = 132c. 2.3 The dividend valuation model (DVM) 2.3.1 If we begin by ignoring share issue costs, the cost of equity, both for new issues and retained earnings, could be estimated by means of a dividend valuation model, on the assumption that the market value of ... ................
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