Calculate the value of Microsoft using the Dividend growth model, using the following information: Risk free rate:
Fantastic news! We've Found the answer you've been seeking!
Question:
- Calculate the value of Microsoft using the Dividend growth model, using the following information: Risk free rate: 2.48%, Return of the market 8.8%, beta: 0.91, dividend $2.48 (D0)and a grow rate of 3.5%. The current stock price is $303, according to your calculation should you invest in the stock? Why?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: