Question
DISCOUNTED CASH FLOW MODEL: Now use a different method to estimate the expected return on equity. Use the DCF model: rS = D1/P0 + g.
DISCOUNTED CASH FLOW MODEL: Now use a different method to estimate the expected return on equity. Use the DCF model: rS = D1/P0 + g.
For your estimate of the growth rate use the analysts forecast of earnings growth that can be found at the same site where you have been picking up your stock data. Alternatively you can also calculate growth with the formula:
g= b(ROE) where b is the earnings retention ratio and ROE is the Return on Equity.
This is for AAPL Apple Inc.
Get infor from yahoo finance or nasdaq and show all work in excel with excel functions when available
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