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1.He thought that the growth rate for past (4.03 %) and next 5 years (8.95 %) for Ford. What is the estimate the growth rate
1.He thought that the growth rate for past (4.03 %) and next 5 years (8.95 %) for Ford. What is the estimate the growth rate of dividends forever?
2.John input the estimates to the dividend growth model, what is the estimate the intrinsic value of the Fords stock? With dividend payment =0.15 and 15% required rate of return of stock.
3. Use sensitivity analysis to see how the intrinsic value will be if the estimated growth rate changes.
Please show work!!
Use the Dividend Growth Model (DGM) to Value Ford's Stock in 2016 Input Variables for DGM: Dividend paid in 2016 Estimated dividend growth rate forever Required rate of return S0.15 15.00% Fundamental value of the stock in 2016
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