Explain why, for purposes of equity valuation, earnings growth forecasts must be for cum-dividend earnings growth, yet

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Explain why, for purposes of equity valuation, earnings growth forecasts must be for cum-dividend earnings growth, yet neither cum-dividend growth rates nor valuation are affected by expected dividends.

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Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

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Question Posted: Mar 17, 2012 06:17 AM

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Explain why, for purposes of equity valuation, earnings growth forecasts must be for cum-dividend earnings growth, yet

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Cumdividend earnings growth incorporates earnings that are earned from the reinvestment ...View the full answer

Financial statements

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