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Consider the Gordon model of constant growth rate assumption. State briefly what this model says about the valueof stocks. In 2018, Walmartpaid $2.08 in dividends
Consider the Gordon model of constant growth rate assumption. State briefly what this model says about the valueof stocks. In 2018, Walmartpaid $2.08 in dividends per share. The stock traded for about $96 per share towards the end of the year. Find out a set of inputs to the Gordon growth model (e.g., the assumed growth rategand the required rate of returnr,that make the intrinsic value of the stock equal to the trading price of $96.
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