Question: Please answer as soon as possible not in excel use formula 1) Given are the inputs for valuing a Fortune 500 Company The average yield
1) Given are the inputs for valuing a Fortune 500 Company The average yield to maturity on the 30-year Treasury bond during the period 2014-2016 is 2.94% Beta value estimated by regressingthe monthlystock returns on monthly market index S& P 500 returns during the three-year period 2014-2016 is 0.373. The return on market index is the average returns on the S&P 500 index during the three-year period 2014-2016. The return on market index is estimated as 11.23%. Table: 1 Dividend and Return highlights 2014 201s 2016 4.57 2013 Year EPS DPS ROE 3.71 1.09 0.21 2011 4.47 1.21 - 5.02 4.88 | 5.05 1.461.59 1.88 192 2012 4.52 2.00 0.24 0.22 0.23 021 0.21 0.182 Other Inputs for Valuation The high growth period is assumed five years. The growth rate of US GDP during the period 2015-2016 is estimated 2.3 per cent. Return on equity of the industry sector in the year 2016=19.2%. 10 Marks Find the value of the company using the two stage DDM
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