Question: Capital markets Put it on a excel sheet Pick two companies that pay dividends (many companies dont, so check!). Use Yahoo Finance (or a source
Capital markets Put it on a excel sheet
Pick two companies that pay dividends (many companies dont, so check!). Use Yahoo Finance (or a source of your choice) to find their dividend history and put the last several years-worth of dividends into the Stocks sheet in Finance Final Student Worksheet. You can most easily find the dividend history on the Historical Data tab and filtering Show to Dividends Only and choosing a Time Period of the past 6 or so years. Using the companys Forward Dividend and Price (you can find these on the companys Summary tab on Yahoo Finance), calculate the required return that is implied by these variables.
What are the companies?
What are the variables you found, and whats the implied required return?
Do this again, but use the companies stock prices from ~18 months ago.
Compare and contrast your findings. Why do you think that the required returns of the two companies are similar or different? If each companys required return has changed over the last 18 months, why do you think that might be the case?
Look up a bond and calculate its yield by putting the bonds characteristics into the Bonds sheet on a excel sheet.
Whats the bond?
What are the variables/characteristics you found? What is the yield (YTM)?
Do this again but use the price (and time to maturity) from 2 years ago and from 5 years ago.
What are these older prices and what are the older yields? Why do you think that the YTM has changed for this bond over these time periods?
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