Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For your initial discussion post, choose a stock that has paid a steady stream of dividends. Estimate the stock price using the dividend valuation model

For your initial discussion post, choose a stock that has paid a steady stream of dividends. Estimate the stock price using the dividend valuation model explained above. Make sure you use a reasonable required rate of return r (10-25%) that is greater than the dividend growth rate g.

Compare the estimated price with the current market price and comment on whether the current price is over-valued, fairly-valued, or under-valued. Provide some possible explanations as to why your estimated price is different from the current market price.

Your initial discussion post should consist of 250-300 words

this is for costco

image text in transcribed

Aug 29, 2019 0.65 Dividend May 09, 2019 0.65 Dividend Feb 07, 2019 0.57 Dividend Nov 08, 2018 0.57 Dividend Aug 30, 2018 0.57 Dividend May 10, 2018 0.57 Dividend Feb 15, 2018 0.5 Dividend Nov 16, 2017 0.5 Dividend Aug 16, 2017 0.5 Dividend May 10, 2017 0.5 Dividend May 08, 2017 7 Dividend Feb 08, 2017 0.45 Dividend Nov 02, 2016 0.45 Dividend Aug 10, 2016 0.45 Dividend Apr 27, 2016 0.45 Dividend Feb 10 2016 01 Dividend Aug 29, 2019 0.65 Dividend May 09, 2019 0.65 Dividend Feb 07, 2019 0.57 Dividend Nov 08, 2018 0.57 Dividend Aug 30, 2018 0.57 Dividend May 10, 2018 0.57 Dividend Feb 15, 2018 0.5 Dividend Nov 16, 2017 0.5 Dividend Aug 16, 2017 0.5 Dividend May 10, 2017 0.5 Dividend May 08, 2017 7 Dividend Feb 08, 2017 0.45 Dividend Nov 02, 2016 0.45 Dividend Aug 10, 2016 0.45 Dividend Apr 27, 2016 0.45 Dividend Feb 10 2016 01 Dividend

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Trade Finance

Authors: Tarsem Bhogal, Arun Trivedi

2nd Edition

303024542X, 9783030245429

More Books

Students also viewed these Finance questions