Question: For McDonald's (Ticker Symbol MCD) Use the answer box below to summarize finding of a second stock, using the two stage dividend growth model. Mention

For McDonald's (Ticker Symbol MCD)

Use the answer box below to summarize finding of a second stock, using the two stage dividend growth model. Mention :

  • the ticker symbol
  • list the five dividends
  • calculate the average dividend,
  • estimate the sustainable growth rate.
  • estimate k based on 10% market return and 2% risk-free rate, use CAPM.

Based on the above state your assumptions regarding:

  • g1
  • g2
  • T
  • k
  • calculate the target price.

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