Question: Two Stage Model (5 years) for WBA Inputs: Current Dividend 1.89 Growth Rate 1 0.185 Growth Rate 2 0.095 Beta 0.85 Market Return 0.12 Risk-

Two Stage Model (5 years) for WBA
Inputs:
Current Dividend 1.89
Growth Rate 1 0.185
Growth Rate 2 0.095
Beta 0.85
Market Return 0.12
Risk- Free Rate 0.02
CAPM Return 0.105
Year 1 2 3 4 5
Dividend Forecast
Forecasted Stock Price
Value (NPV)
Market Price 47.72

Given this model, calculate the dividend forecast, the forecasted stock price , and the value of the stock and discuss the results

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!