Question
(i) Calculate Cost of Equity(rE) for MAC using Gordon per share dividend method (if current stock price is 28.46 Following are the monthly price data
(i) Calculate Cost of Equity(rE) for MAC using Gordon per share dividend method (if current stock price is 28.46 Following are the monthly price data of MAC and Fort companies from 2001-2006
Prices Date MAC Fort
Jan-01 35.38 1,366.01
Feb-01 27.32 1,239.94
Mar-01 25.17 1,160.33
Apr-01 29.57 1,249.46
May-01 25.86 1,255.82
Jun-01 28.00 1,224.38
Jul-01 28.54 1,211.23
Aug-01 26.88 1,133.58
Sep-01 19.57 1,040.94
Oct-01 23.24 1,059.78
Nov-01 31.16 1,139.45
Dec-01 31.45 1,148.08
Jan-02 35.04 1,130.20
Feb-02 28.55 1,106.73
Mar-02 30.41 1,147.39
Apr-02 28.61 1,076.92
May-02 27.62 1,067.14
Jun-02 18.27 989.82
Jul-02 18.79 911.62
Aug-02 16.67 916.07
Sep-02 13.89 815.28
Oct-02 17.30 885.76
Nov-02 20.88 936.31
Dec-02 15.57 879.82
Jan-03 15.66 855.7
Feb-03 17.25 841.15
Mar-03 16.28 848.18
Apr-03 18.40 916.92
May-03 20.82 963.59
Jun-03 20.81 974.5
Jul-03 24.89 990.31
Aug-03 28.59 1,008.01
Sep-03 27.52 995.97
Oct-03 32.95 1,050.71
Nov-03 33.54 1,058.20
Dec-03 32.05 1,111.92
Jan-04 30.52 1,131.13
Feb-04 29.20 1,144.94
Mar-04 27.20 1,126.21
Apr-04 25.73 1,107.30
May-04 28.55 1,120.68
Jun-04 27.60 1,140.84
Jul-04 24.38 1,101.72
Aug-04 21.29 1,104.24
Sep-04 20.06 1,114.58
Oct-04 22.26 1,130.20
Nov-04 22.38 1,173.82
Dec-04 23.39 1,211.92
Jan-05 22.45 1,181.27
Feb-05 23.99 1,203.60
Mar-05 23.23 1,180.59
Apr-05 23.52 1,156.85
May-05 26.96 1,191.50
Jun-05 26.02 1,191.33
Jul-05 27.14 1,234.18
Aug-05 25.24 1,220.33
Sep-05 24.19 1,228.81
Oct-05 23.06 1,207.01
Nov-05 26.27 1,249.48
Dec-05 24.57 1,248.29
Jan-06 25.90 1,285.45
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