| Article ID: | iaor2005357 |
| Country: | United States |
| Volume: | 141 |
| Issue: | 2/3 |
| Start Page Number: | 385 |
| End Page Number: | 393 |
| Publication Date: | Sep 2003 |
| Journal: | Applied Mathematics and Computation |
| Authors: | Piccardi C., Ghezzi L.L. |
| Keywords: | financial |
A novel dividend valuation model is put forward by using a Markov chain. The valuation procedure turns out to be very simple, since it requires the solution of a system of linear equations. The dividend valuation model is in accordance with the empirical evidence whereby dividend-price ratios can change as time proceeds. Moreover, it offers fresh insights into previous dividend valuation models.