Question: Dividend Growth Model Approach using this data Historic beta 1996 0.95 1997 0.82 1998 0.82 1999 0.62 2000 0.81 YTD(2001) 0.61 Average 0.7 UK historical

Dividend Growth Model Approach using this data

Historic beta
1996 0.95
1997 0.82
1998 0.82
1999 0.62
2000 0.81
YTD(2001) 0.61
Average 0.7

UK historical equity premiums
Geometric mean 5.30%
Arithmetic mean 7.20%
Consensus EPS estimates
Fiscal year2002 2.31
Fiscal Year 2003 2.66

Current Yield on UK Treasury
3 months 3.58%
6 months 3.58%
1 year 3.58%
5 year 4.87%
10 year 5.38%
20 year 5.73%

Current yield on Debt
coupon (semi-annual) 6.74%
Issued 7/14/96
Maturity 7/14/21
Current price 95.50

Dividend history payment date and forecast
year quarter 1 quarter 2 quarter 3 quarter 4 total
1997 0.11 0.11 0.11 0.11 0.44
1998 0.12 0.12 0.12 0.12 0.48
1999 0.12 0.12 0.12 0.12 0.48
2000 0.12 0.12 0.12 0.12 0.48
2001 0.12 0.12 0.12 0.12 0.48

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