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Go to any Finance website, and get the quote information of a stock you chose: Use the following three methods to determine if you will

Go to any Finance website, and get the quote information of a stock you chose:

  1. Use the following three methods to determine if you will purchase this stock at current market price. Assume market interest rate (r) as 12%, constant dividend growth rate (g) as 10%, and industry average P/E ratio as 30 times

(1) True value method (Gordon dividend valuation model )

(2) Annual rate of return method (Gordon dividend valuation model)

(3) P/E multiples approach

3. If you purchased this stock at 52 week range low, sold it at current market price, and you also received dividend during this holding period; calculate holding period rate of return

image text in transcribedimage text in transcribed

KEY STOCK DATA ? P/E Ratio (TTM) 34.56 (12/03/20) EPS (TTM) $6.20 Market Cap $1.63T Shares Outstanding 7.56 B Public Float 7.45 B Yield 1.05% (12/03/20) Latest Dividend $0.560000002 (12/09/20) Ex-Dividend Date 11/17/20 SHORT INTEREST (11/12/20) ? Shares Sold Short 34.07 M Change from Last -7.42% Percent of Float 0.46% Volume 1D 5D 1M 3M YTD 1Y 3Y AT CLOSE 4:00 PM EST 12/03/20 $214.24us 25,120,922 -1.13 -0.52% 65 Day Avg Vol 31,191,672 $215.0 AFTER HOURS 7:59 PM EST 12/03/20 $214.42 0.18 0.08% 1 Day Range 213.65-216.3757 $212.5 AFTER HOURS VOL 2,874,275 52 Week Range 132.52-232.86 (03/23/20 - 09/02/20) $210.0 Nov 27 Nov 30 Dec 1 Dec 2 Dec 3 ADVANCED CHARTING COMPARE Open 214.61 Prior Close 215.37 (12/02/20) 1 Day MSFT-0.52% DJIA 0.29% S&P 500 -0.06% Technology 1.41% KEY STOCK DATA ? P/E Ratio (TTM) 34.56 (12/03/20) EPS (TTM) $6.20 Market Cap $1.63T Shares Outstanding 7.56 B Public Float 7.45 B Yield 1.05% (12/03/20) Latest Dividend $0.560000002 (12/09/20) Ex-Dividend Date 11/17/20 SHORT INTEREST (11/12/20) ? Shares Sold Short 34.07 M Change from Last -7.42% Percent of Float 0.46% Volume 1D 5D 1M 3M YTD 1Y 3Y AT CLOSE 4:00 PM EST 12/03/20 $214.24us 25,120,922 -1.13 -0.52% 65 Day Avg Vol 31,191,672 $215.0 AFTER HOURS 7:59 PM EST 12/03/20 $214.42 0.18 0.08% 1 Day Range 213.65-216.3757 $212.5 AFTER HOURS VOL 2,874,275 52 Week Range 132.52-232.86 (03/23/20 - 09/02/20) $210.0 Nov 27 Nov 30 Dec 1 Dec 2 Dec 3 ADVANCED CHARTING COMPARE Open 214.61 Prior Close 215.37 (12/02/20) 1 Day MSFT-0.52% DJIA 0.29% S&P 500 -0.06% Technology 1.41%

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