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1s (Intrinsic Value: Dividend versus FCF to Equity Model): redefining their financial models to evaluate stocks for acquisition to its balanced fund portfolio. They employed
1s (Intrinsic Value: Dividend versus FCF to Equity Model): redefining their financial models to evaluate stocks for acquisition to its balanced fund portfolio. They employed a junior financial analyst to assess the intrinsic price of all stocks listed on the most current dividend aristocrats list is considering - Provided with the following information obtained from Me (see table) 1. Calculate the intrinsic value of using the dividend growth model method 2. Calculate the intrinsic value of C ta using the free cash flow to equity method 3. If the market price of Coca-Cola is $56.84, which security should the junior analyst select for the Fidelity balanced fund? Explain why. Please note that the required return on the market is reflected by the S&P500. The investor's rate of return (required) for Cocais 12%. Financial Metrics Industry Dividend yield Shares outstanding Dividend (last paid) Growth rate S&P 500 return Free cash flow (next year) Market price Financial Metrics Market price Investor's required return Dividend growth rate after year 7 Consumer staples 3% 4,320,000,000 $1.68 10.80% 14.00% $11,710,000,000 $56.84 Coca-Cola $56.84 12.00% 2% 1s (Intrinsic Value: Dividend versus FCF to Equity Model): redefining their financial models to evaluate stocks for acquisition to its balanced fund portfolio. They employed a junior financial analyst to assess the intrinsic price of all stocks listed on the most current dividend aristocrats list is considering - Provided with the following information obtained from Me (see table) 1. Calculate the intrinsic value of using the dividend growth model method 2. Calculate the intrinsic value of C ta using the free cash flow to equity method 3. If the market price of Coca-Cola is $56.84, which security should the junior analyst select for the Fidelity balanced fund? Explain why. Please note that the required return on the market is reflected by the S&P500. The investor's rate of return (required) for Cocais 12%. Financial Metrics Industry Dividend yield Shares outstanding Dividend (last paid) Growth rate S&P 500 return Free cash flow (next year) Market price Financial Metrics Market price Investor's required return Dividend growth rate after year 7 Consumer staples 3% 4,320,000,000 $1.68 10.80% 14.00% $11,710,000,000 $56.84 Coca-Cola $56.84 12.00% 2%
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