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We are to choose the dividend payment policy in the company in such a way...

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Finance

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We are to choose the dividend payment policy in the company in such a way as to maintain the current market value (price) of the company. There are two dividend payment models to choose from: fixed dividend and the Gordon model. Please indicate how much (in percentage points) should the nearest fixed dividend be higher than the nearest dividend paid according to the Gordon model, if we assume that the increase in profits of the company (to be distributed among shareholders) will be at the level of 2.1% each year and we assume that the discount rate in this market will be 8%. Calculate the nearest dividend according to the Gordon model if the fixed dividend is equal 10 PLN

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