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Please answer questions 1 and 2 1. Assume the required return (R) is 10% . using R, dividend information, and growth rate (g) compute the
Please answer questions 1 and 2
1. Assume the required return (R) is 10% . using R, dividend information, and growth rate (g) compute the stock prices for this companies. Second assume the required rate is 20%. using R, dividend information and growth rate (g) compute the stock price. 2. Compare estimated stock prices with actual stock prices as of January 3, 2022. Is it undervalued or fairly-valued or overvalued based on your estimation. What is your decision if you hold these stocks ? whats your decision if you dont hold these stocks? Dividend Yield Trailing ? Dividend Yield Forward ? 0.98% 1.10% **** Payout Ratio Average Yield, 5y 29.47 % 0.91% ***** * * * * Payout Stability 100 % Payout Growth Stability 100 % DPZ:NYSE Statistics for 5 years: 2017-2022 Average Dividend $0.676 Average Dividends per Year $2.704 Average Dividend Yield 0.22% Average Annual Dividend Yield 0.91% Frequency of payments, how many times a year 4.0 Duration of growth, number of years 5.0 Payout Stability 100 % Payout Growth Stability 100 % Dividend Growth, Simple 104.35 % Dividend Growth, CAGR 15.36 % Minimum $0.46 (2017-03-13) Maximum $0.94 (2021-03-12) Ex-Dividend Date Payout Amount Yield Pay Date 2022-03-14 $1.1 0.28% 2022-03-30 2021-12-14 $0.94 0.18% 2021-12-30 2021-09-14 $0.94 0.19% 2021-09-30 2021-06-14 $0.94 0.21% 2021-06-30 2021-03-12 $0.94 0.26% 2021-03-30 2020-12-14 $0.78 0.2% 2020-12-30 Expand DPZ NYSE - A2 Finance.com 4.00 $3.76 $3.12 0.94 3.00 $2.6 0.78 $2.2 0.65 0.94 2.00 51.84 0.55 0.78 $1.52 0.46 0.65 0.38 0.55 0.94 0.46 1.00 0.78 0.38 0.65 0.55 0.46 0.38 0.78 0.94 0.55 0.65 0.39 0.45 0.00 '16 '17 18 19 21 Year Amount Yield (at avg price) Avg. Stock Price La 2022 $1.1 0.28 % $386 2021 $3.8 0.86 % $436 2020 $3.1 0.86 % $365 2019 $2.6 0.98 % $265 2018 $2.2 0.86 % $255 2017 $1.8 0.97 % $189 1. Assume the required return (R) is 10% . using R, dividend information, and growth rate (g) compute the stock prices for this companies. Second assume the required rate is 20%. using R, dividend information and growth rate (g) compute the stock price. 2. Compare estimated stock prices with actual stock prices as of January 3, 2022. Is it undervalued or fairly-valued or overvalued based on your estimation. What is your decision if you hold these stocks ? whats your decision if you dont hold these stocks? Dividend Yield Trailing ? Dividend Yield Forward ? 0.98% 1.10% **** Payout Ratio Average Yield, 5y 29.47 % 0.91% ***** * * * * Payout Stability 100 % Payout Growth Stability 100 % DPZ:NYSE Statistics for 5 years: 2017-2022 Average Dividend $0.676 Average Dividends per Year $2.704 Average Dividend Yield 0.22% Average Annual Dividend Yield 0.91% Frequency of payments, how many times a year 4.0 Duration of growth, number of years 5.0 Payout Stability 100 % Payout Growth Stability 100 % Dividend Growth, Simple 104.35 % Dividend Growth, CAGR 15.36 % Minimum $0.46 (2017-03-13) Maximum $0.94 (2021-03-12) Ex-Dividend Date Payout Amount Yield Pay Date 2022-03-14 $1.1 0.28% 2022-03-30 2021-12-14 $0.94 0.18% 2021-12-30 2021-09-14 $0.94 0.19% 2021-09-30 2021-06-14 $0.94 0.21% 2021-06-30 2021-03-12 $0.94 0.26% 2021-03-30 2020-12-14 $0.78 0.2% 2020-12-30 Expand DPZ NYSE - A2 Finance.com 4.00 $3.76 $3.12 0.94 3.00 $2.6 0.78 $2.2 0.65 0.94 2.00 51.84 0.55 0.78 $1.52 0.46 0.65 0.38 0.55 0.94 0.46 1.00 0.78 0.38 0.65 0.55 0.46 0.38 0.78 0.94 0.55 0.65 0.39 0.45 0.00 '16 '17 18 19 21 Year Amount Yield (at avg price) Avg. Stock Price La 2022 $1.1 0.28 % $386 2021 $3.8 0.86 % $436 2020 $3.1 0.86 % $365 2019 $2.6 0.98 % $265 2018 $2.2 0.86 % $255 2017 $1.8 0.97 % $189 Step by Step Solution
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