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1. Constant Dividend Growth Use Value Line to find the expected market return Use yahoo finance to find the risk-free rate Use Value Line to

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1. Constant Dividend Growth Use Value Line to find the expected market return Use yahoo finance to find the risk-free rate Use Value Line to find the beta for Southern Co. (SO) a. Compute the required return of SO using the CAPM b. Using Value Line find the dividends for SO from 2015 - 2020. Compute the average annual dividend growth rate and the compound annual dividend growth (geometric average) for the historical period from 2015-20120. c. Using the constant dividend growth model and the closing price for SO on 10/25/21, what dividend growth rate is the market projecting? IF the dividend growth rate from the 2015-2020 truly remains constant, is SO overvalued, undervalued, or fairly priced. What price would you expect for SO in 1 year assuming the constant dividend growth model? d. 1. Constant Dividend Growth Use Value Line to find the expected market return Use yahoo finance to find the risk-free rate Use Value Line to find the beta for Southern Co. (SO) a. Compute the required return of SO using the CAPM b. Using Value Line find the dividends for SO from 2015 - 2020. Compute the average annual dividend growth rate and the compound annual dividend growth (geometric average) for the historical period from 2015-20120. c. Using the constant dividend growth model and the closing price for SO on 10/25/21, what dividend growth rate is the market projecting? IF the dividend growth rate from the 2015-2020 truly remains constant, is SO overvalued, undervalued, or fairly priced. What price would you expect for SO in 1 year assuming the constant dividend growth model? d

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