Use the stated CAGR from the graph below as the growth rate (g) for your Constant Growth

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Use the stated CAGR from the graph below as the growth rate (g) for your Constant Growth Model valuation.

Assume a 10.5% discount rate (R).

Calculate an estimated value of a share of the stock using the Constant Growth Model

By using the historical rate of growth in the dividend, the assumption is that the company will sustain its recent rate of dividend growth into the future.

Walmart Incs trailing 12 month dividend per share is ( 2.24 ) and its dividend has grown at a cumulative annualized rate o

Related Book For answer-question

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Posted Date: May 22, 2023 08:02 AM

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Use the stated CAGR from the graph below as the growth rate (g) for your Constant Growth

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The image youve provided shows a graph with a CAGR Compound Annual Growth Rate of 19 for the dividen... View the full answer

Fundamentals of Investments, Valuation and Management

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