Even if all the parameters used to estimate a share's value using the Gordon model are unchanged, its price would still rise and fall in a saw-tooth pattern over time.

Question

Quizplus · Accepted Answer

The Gordon model assumes that dividends grow at a constant rate, but in reality, dividends can fluctuate. This can cause the share's price to rise and fall in a saw-tooth pattern over time.

Even If All the Parameters Used to Estimate a Share's