Question: Question 2 Question 2 InterContinental Hotels Group operates 18 hotel brands across the midscale through luxury segments. They include: Holiday Inn, Hotel Indigo, Avid, Klimpton,

Question 2

Question 2 Question 2 InterContinental Hotels Group operates 18 hotel brands across

Question 2 InterContinental Hotels Group operates 18 hotel brands across the midscale through luxury segments. They include: Holiday Inn, Hotel Indigo, Avid, Klimpton, and others. The dividend yield trailing twelve months is 0.784%, and it's current market price per share is USD $50.89. InterContinental Hotels Group's year to date return is -25.89%. PER SHARE DATE PRICE PER SHARE (USD $) DIVIDEND (USD $) 2019 DEC|68.87 1.18 2018 DEC 56.82 1.1295 2017 DEC|67.17 1.0292 2016 DEC 50.24 1.0884 2015 DEC 50.65 1.0488 2014 DEC53.08 0.9735 Part a. Calculate according to the Constant Growth Model, InterContinental's growth rate using the provided historical data. Part b. Suppose IHG is expected to grow at the rate calculated in Part a. for 3 more years, and thereafter, grow a rate of 5% for the foreseeable future. What is the current value of IHG common stock to an investor who is able to earn 5.8% from investments with a similar level of risk? The beta of IHG is 0.92

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