According to this theory, there is no difference between internal and external financing. However, on considering the. According to M-M, the market price of a share at the beginning of a period is equal to the present value of dividend paid at the end of the period plus the market price of the share at the end of the period. But the dividends can be severely reduced if capital markets don't cooperate. The Gordon Model is the theory propounded by Myron Gordon. When r
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