This is for Excon Mobil Risk Free rate can be 10 year T-Bond rate. If you choose
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This is for Excon Mobil
Risk Free rate can be 10 year T-Bond rate. If you choose a different one, then give reasons
Expected return on Stock market can be Long term rate of return on S&P Index. Currently about 10.5%. You may use a different rate should you choose it
Beta of the stock needs to be calculated. Use daily return on stock as Y variable, Return on S&P as X variable and calculate Slope and this is Beta. Use daily return / Monthly return for between 5 and 10 years to calculate Beta.
Once you have this, apply Dividend Growth Model to calculate stock price.
**Explain all Assumptions. Give Sources to all facts.**
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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