1. The company chosen for your group will be your designated share for this assignment.
2. Find the historical dividend payment pattern for the last 10-15 years from the company website, Annual Report or DSE website (www.dsebd.org).
3. If dividend payment is not clear from the sources, then you may use the EPS data as an alternative.
4. From these past data, you have to figure out the average growth rate of dividends or earnings. This will provide you with a basis for assuming how might the dividend growth pattern be.
5. Use the Constant Growth model to find the value of your share. Use

V= D₁/(k-g), To get D_1, first get the information about the last dividend payment. That will be D₀.

6. Now use different combination of k and g value to find the various ranges of prices for the stock. Fill up the table using all combinations.

K value	8%	10%	12%	15%	18%	20%	25%
g=3%
g=4%
g=5%
g=6%
g=8%
g=10%

7. Now find out the actual market price for the stock. Make your decision whether it is undervalued or overvalued according to your estimated table values.
8. Addition to this also mention the price graph for the last one year for your stock and make an assessment on your decision on item#7.

For your help, please find below Square Pharmaceuticals dividend data for the past 10 years.

Declaration date	Record date	Payment date	Amount of dividend
2-Mar-05	15-Mar-05	15-Apr-05	0.33
24-May-05	15-Jun-05	15-Jul-05	0.33
2-Aug-05	15-Sep-05	15-Oct-05	0.33
30-Nov-05	15-Dec-05	15-Jan-06	0.33
1-Mar-06	15-Mar-06	15-Apr-06	0.33
2-May-06	15-Jun-06	15-Jul-06	0.33
1-Aug-06	15-Sep-06	15-Oct-06	0.33
31-Oct-06	15-Dec-06	15-Jan-07	0.33
6-Feb-07	15-Mar-07	15-Apr-07	0.365
1-May-07	15-Jun-07	15-Jul-07	0.365
31-Jul-07	14-Sep-07	15-Oct-07	0.365
6-Nov-07	14-Dec-07	15-Jan-08	0.365
6-Feb-08	14-Mar-08	15-Apr-08	0.365
12-Dec-08	23-Dec-08	15-Jan-09	0.365
10-Feb-09	16-Mar-09	15-Apr-09	0.385
6-May-09	15-Jun-09	15-Jul-09	0.385
5-Aug-09	15-Sep-09	15-Oct-09	0.405
11-Nov-09	15-Dec-09	15-Jan-10	0.405
3-Feb-10	15-Mar-10	15-Apr-10	0.435
5-May-10	15-Jun-10	15-Jul-10	0.435
4-Aug-10	15-Sep-10	15-Oct-10	0.4575
9-Dec-10	15-Dec-10	15-Jan-11	0.4575
9-Feb-11	15-Mar-11	15-Apr-11	0.4925
11-May-11	15-Jun-11	15-Jul-11	0.5175
3-Aug-11	15-Sep-11	15-Oct-11	0.5175
2-Nov-11	15-Dec-11	15-Jan-12	0.5175
8-Feb-12	15-Mar-12	15-Apr-12	0.5425
3-May-12	15-Jun-12	15-Jul-12	0.5425
7-Aug-12	14-Sep-12	15-Oct-12	0.5675
31-Oct-12	14-Dec-12	15-Jan-13	0.5675
6-Feb-13	15-Mar-13	15-Apr-13	0.5825
8-May-13	14-Jun-13	15-Jul-13	0.5825
7-Aug-13	16-Sep-13	15-Oct-13	0.5825
6-Nov-13	16-Dec-13	15-Jan-14	0.5825
5-Feb-14	14-Mar-14	15-Apr-14	0.6175
5-May-14	16-Jun-14	15-Jul-14	0.6175
6-Aug-14	15-Sep-14	15-Oct-14	0.6175
5-Nov-14	15-Dec-14	15-Jan-15	0.6175
4-Feb-15	16-Mar-15	15-Apr-15	0.65
29-Apr-15	15-Jun-15	15-Jul-15	0.65
5-Aug-15	15-Sep-15	15-Oct-15	0.65

Answer rating: 100% (QA)

ANSWER Based on the dividend data for Square Pharmaceuticals the average growth rat... View the full answer