Odroczenie wypłat dywidendy a koszt kapitału własnego spółki

The subject of this paper is Dividend Discount Model used in calculation of company’s equity cost. The paper shows that the model is inadequate to companies that do not pay dividend, which happens often in the emerging countries like Poland. The purpose of this paper is a presentation of arguments showing that not paying dividend can not be permanent, the analysis of the construction of Dividend Discount Model, a proposal of supplementing the model with formula, which enables calculation of equity cost when the payment of dividends is delayed and the analysis of possibilities of practical application of this formula.