In Gordon's dividend growth model, the estimated share value is:

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According to Gordon's dividend growth model, the estimated share value is positively related to the current annual dividend. This model assumes that the dividend will continue to grow at a constant rate, so the expected future dividend payments are discounted back to their present value using the required return on the share. But the value of the share also depends on the current annual dividend, as it provides a baseline for future growth. Therefore, an increase in the current annual dividend will lead to an increase in the estimated share value.

In Gordon's Dividend Growth Model, the Estimated Share Value Is