Stock valuation is difficult because dividends are difficult to forecast. Go to Suncors website (suncor.com) and click

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Stock valuation is difficult because dividends are difficult to forecast. Go to Suncor’s website (suncor.com) and click on “Investor Centre”. Use the information provided and the dividend growth model to estimate the implied growth for Suncor’s dividends. Is this reasonable? Can you form a similar conclusion by looking at Suncor’s P/E ratio?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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