Question: PLEASE SUMBIT USING EXCEL FORMULA ALL DATA IS FROM YAHOO FINANCE! Question C : Using Dividend Valuation Model to determine the intrinsic values of selected
PLEASE SUMBIT USING EXCEL FORMULA
ALL DATA IS FROM YAHOO FINANCE!
Question C : Using Dividend Valuation Model to determine the intrinsic values of selected firms, you would need to calculate dividend growth rate and required rate of return. To calculate the required rate of return, use CAPM. Risk free rate is assumed to be zero (very close to 0 now) and use weekly market S&P 500 (1/1/2011-11/30/2013) to obtain market return. Then determine the following firms intrinsic values: Zero dividend growth: Yahoo, Google Constant dividend: Bank of America Constant Growth on dividend: IBM, Microsoft
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