The two-stage dividend discount model takes into account two stages of growth. Thismethod ofequity valuationis not a model based on two cash flows but is a two-stage model where the first stage may have a high growth rate, and the second stage is usually assumed to have a stable growth ...
The H-model is more flexible than the two-stage dividend discount model (DDM) because:A. payout ratio changes to adjust the changes in growth estimates.B. initial high growth rate declines linearly to the level of stable growth rate.C. terminal value is not sensitive to the estimates of ...
Therefore, the paper examines the effect of ownership structure on dividend policy using Heckman's two-stage technique. Utilizing 304 firm-year observations from industrial and consumer goods firms listed in the Nigerian Stock Exchange for the period within 2009-2019, the result shows that in the ...