American Electric Power Inc. (AEP) is an electric utility similar to ATT or NGG discussed in class. Our goal is to determine a valuation for this company. Imagine that today is December 31, 2015 and the markets are closed.

1. what is the closing share price as of 12/31/2015 and how many dollars per share of dividend were paid in 2015?determine the growth rate of dividends for AEP and the dividend yield?

2.Combine the sectors cost of capital from above with the trailing 12-month dividend payment for AEP, and your growth rate to produce a price target for AEP.

3. What action would you take based on the current price of AEP and your price target?