Soddy79 i know u got this!!! When using the DDM, we’re calculating the Price or Value of the stock, so should we use return on equity or wacc?? I’m guessing return on equity?
required return on equity for DDM WACC for projects or FCFF
thanks Joe!!
Ask yourself, who receive dividend? Equity Owners; so use cost of equity. Who receive FCFF? ALL; So us WACC