Question: How to calculate DDM Dividend discount model using this data? the yield to maturity is issued at 1996 and the maturity is 2021 currently this
How to calculate DDM Dividend discount model using this data? the yield to maturity is issued at 1996 and the maturity is 2021 currently this data is for july 2001
| 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 |
value line forecast from 1998/2000 to 2004-2006- 5.40%
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