Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Estimate the value of the stock using two different models using your calculated estimates (you must provide the models used from text or used

image text in transcribed

image text in transcribed

6. Estimate the value of the stock using two different models using your calculated estimates (you must provide the models used from text or used in class and show your calculations). 7. Estimate the value of the stock using the models and the Bloomberg estimate of EPS. 8. Given your value (price) estimate (in 6 above) versus the current price explain any spread/difference between your estimate of value and the current price. 2017 9.27 2.40 Year 2016 EPS 8.35 Dividend per 2.18 year EPS growth ratr over 6 years Dividend growth rate over 6 years Average EPS growth rate 9% Average Dividend growth rate -7% 2022 Estimates Based on compound growth rate EPS 5.32 Dividend 0.75 -6% -14% 2018 12.01 2.72 2019 2020 2.99 3.31 0.75 0.80 Based on average growth rate I 6.21 0.81 2021 5.67 0.87 Previous year growth rate 9.71 0.95 6. Estimate the value of the stock using two different models using your calculated estimates (you must provide the models used from text or used in class and show your calculations). 7. Estimate the value of the stock using the models and the Bloomberg estimate of EPS. 8. Given your value (price) estimate (in 6 above) versus the current price explain any spread/difference between your estimate of value and the current price. 2017 9.27 2.40 Year 2016 EPS 8.35 Dividend per 2.18 year EPS growth ratr over 6 years Dividend growth rate over 6 years Average EPS growth rate 9% Average Dividend growth rate -7% 2022 Estimates Based on compound growth rate EPS 5.32 Dividend 0.75 -6% -14% 2018 12.01 2.72 2019 2020 2.99 3.31 0.75 0.80 Based on average growth rate I 6.21 0.81 2021 5.67 0.87 Previous year growth rate 9.71 0.95

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Quantitative Finance

Authors: Carl Chiarella, Alexander Novikov

2010th Edition

3642034780, 978-3642034787

More Books

Students also viewed these Finance questions

Question

The paleolithic age human life, short write up ?

Answered: 1 week ago

Question

3. Evaluate your listeners and tailor your speech to them

Answered: 1 week ago