Kasomi
JT Founder
Gordon’s theory on dividend policy is one of the theories believing in the ‘relevance
of dividends’ concept. It is also called as ‘Bird-in-the-hand’ theory that states that
the current dividends are important in determining the value of the firm. Gordon’s
model is one of the most popular mathematical models to calculate the market
value of the company using its dividend policy.
of dividends’ concept. It is also called as ‘Bird-in-the-hand’ theory that states that
the current dividends are important in determining the value of the firm. Gordon’s
model is one of the most popular mathematical models to calculate the market
value of the company using its dividend policy.
