H.J. Heinzs annual dividends were as follows: 1990 ..............$0.540 1991.............. 0.620 1992 .............. 0.700 1993.............. 0.780 1994 .............. 0.860 1995 .............. 0.940 1996 .............. 1.035
H.J. Heinz’s annual dividends were as follows:
1990 ..............$0.540
1991.............. 0.620
1992 .............. 0.700
1993.............. 0.780
1994 .............. 0.860
1995 .............. 0.940
1996 .............. 1.035
1997 .............. 1.135
1998 .............. 1.235
1999 .............. 1.344
2000 .............. 1.447
Use these payments to determine the historical growth rate of the dividend. Calculate growth rates based on
(1) The average percentage change
(2) Beginning and terminal values.
(3) Regression analysis.
Find the current yield on the six-month Treasury bill and Heinz’s beta and most recent annual dividend. Assume that the return on the market is 5 to 7 percent higher than the Treasury bill rate. Develop a range of stock valuations based on this information. If your valuation differs from the current market price of the stock, what are some possible explanations for the divergence?
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Heinz is a large food producer and processor company The dividend has consistently risen each year If the percentage changes are averaged the rate of ... View full answer
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