Gordon's dividend growth model requires a number of variables to be estimated.The variable about which there is the greatest uncertainty is:

Question

Quizplus · Accepted Answer

The variable with the greatest uncertainty in Gordon's dividend growth model is the growth rate (g). Estimating the growth rate is difficult as it depends on various factors such as the economic environment, company-specific factors, and industry trends. It requires making assumptions about the company's future prospects and the growth potential of its earnings and dividends. Hence, g is the most uncertain variable in the model.

Gordon's Dividend Growth Model Requires a Number of Variables to Be