Question
1). Calculate the value of Walmart using the Dividend growth model (D1/i-g), using the following information: discount rate (i) = 6%, a growth of 2.30%
1). Calculate the value of Walmart using the Dividend growth model (D1/i-g), using the following information: discount rate (i) = 6%, a growth of 2.30% (g) and a current dividend (D0) of $2.24. The current stock price is $150, according to your calculation should you invest in the stock? Why?
2). alculate the value of Verizon using the Dividend growth model, using the following information: discount rate (i) = 7%, dividend $2.61 (D0) and a grow rate of 2.00%. The current stock price is $38, according to your calculation should you invest in the stock? Why?
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