Question
Determine the most recent stock price and the total dividends paid over the past year for the company Activision Blizzard. Calculate the current dividend yield
Determine the most recent stock price and the total dividends paid over the past year for the company Activision Blizzard. Calculate the current dividend yield on the stock. Calculate the required rate of return (Ke) for an investment in the common stock. use formula 10-9 to do this calculation and use an assumed growth rate of 5%. Identify the current P/E ratio. calculate of the dividend yield and required rate of return (Ke), and present the P/E ratio.
Could you explain the relationship between Activision Blizzard Ke and P/E ratio and what that relationship indicates about the company's future cash flow risk?
Could you explain whether the data for the company supports the general relationship between a high Ke and a low P/E ratio (or low Ke and high P/E ratio)?
Predict the impact on the company's stock price based on the forecast that it will increase its dividends by a rate higher than 5%.
Compare Activision Blizzard's P/E ratio with the P/E ratios of two other companies in its industry.
Hypothesize which company in this industry should have the lowest Ke based on the P/E comparisons.
Summarize the connection between a company's growth rate, required return rate, and value (stock price).
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