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Could you walk me through this? It's Google Stock and I need a walkthrough Determine the value of your stock. (Chapter 11) a. Use the
Could you walk me through this? It's Google Stock and I need a walkthrough
Determine the value of your stock. (Chapter 11) a. Use the required return you calculated in part 4 for the valuation, if applicable. b. If a dividend is paid, determine if it is fixed or growing annually. i. If it is growing (changing each year), determine the growth rate. The average growth rate for the previous four years is acceptable. It is possible to have negative growth if the dividend is decreasing. c. Use the Dividend Discount model, Constant Growth Dividend model, or the P/E Multiplier model (if no dividends are paid) for valuation. You should use a dividend growth model if a dividend is paid. d. Compare your stock's value to the current market price; is the stock currently overvalued or undervalued in the market Step by Step Solution
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