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1. Pick a company that pays dividends.* *Please notice that 5 additional bonus points will be awarded for choosing a company playing important role or
1. Pick a company that pays dividends.* *Please notice that 5 additional bonus points will be awarded for choosing a company playing important role or having presence in Alaska economy and writing a 0.5-1 page description of why it this company was chosen. It can be submitted together with the first stock project. 2. Collect required data (you can get it from Yahoo Finance): Dividends paid last year (for the year) - Historical data tab at Yahoo Finance. Analyst projected growth rate Yahoo Finance. POK P/E ratio - Summary tab at Yahoo Finance. Earnings per share (EPS) - Summary tab at Yahoo Finance. Current stock price - Summary tab at Yahoo Finance. Compute the stock value using a discount rate of 9.5%. 3. Go through the following assignments preparing excel spreadsheet with analysis: A. Compute the value using the constant growth rate model. Is the stock undervalued or overvalued (compare the value calculated to the current stock price)? use the Next 5 Years Growth Estimate - Analysis tab at B. U
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