1. Consider the data in the provided in the data General Electrics. Estimate the following:
2. Compounded annual growth rate in dividends
3. Average annual growth rate in dividends
4. Which of these two rates will you use for the Gordon Growth model, and why?
5. Expected dividend in 2008
6. The expected price in the beginning of 2008, if your expected rate of return in the past 20 years average return.
7. The beta of stock.
8. Is GE a defensive or aggressive stock? Explain your answer.
9. If the next year's expected return on the market is expected to be 5%, and the risk free rate is expected to be 3%, what rate of return would you expect on GE?