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Please calculate #3 return on investment PART I: STOCK VALUATION Dividend from Financial Statements: Read the Explanations to the right of the calculation cells for
Please calculate #3 return on investment
PART I: STOCK VALUATION | ||||||||
Dividend from Financial Statements: | ||||||||
Read the Explanations to the right of the calculation cells for specific information on the data. | ||||||||
Year | Cash Div/share ($) | Dividend Yield | Stockholder's Equity (in millions) | Stock Price | ||||
2015 | 2.92 | 3.00% | 2,491 | 97.33333333 | ||||
2016 | 3.12 | 2.70% | 429 | 115.5555556 | ||||
2017 | 3.32 | 2.60% | 1,030 | 127.6923077 | ||||
1. Stock Valuation - The new dividend yield if the company increased its dividend per share by 1.75 | ||||||||
Year | Cash Div/Share ($) +1.75 | Dividend Yield | Stockholder's Equity (in millions) | Stock Price | ||||
2015 | 4.67 | 4.80% | 2,491 | 97.33333333 | ||||
2016 | 4.87 | 4.21% | 429 | 115.5555556 | ||||
2017 | 5.07 | 3.97% | 1,030 | 127.6923077 | ||||
2. The dividend yield if the firm doubled it's outstanding shares | ||||||||
Year | Cash Div/Share ($) | Dividend Yield | Stockholder's Equity (in millions) -doubled | Stock Price | ||||
2015 | 1.46 | 1.50% | 4,982 | 97.33333333 | ||||
2016 | 1.56 | 1.35% | 858 | 115.5555556 | ||||
2017 | 1.66 | 1.30% | 2,060 | 127.6923077 | ||||
3. The rate of return on equity (i.e., the cost of stock) based on the new dividend yield you calculated above | ||||||||
Year | Cash Div/Share ($) +1.75 | Stock Price | Return on Investment | |||||
2015 | 4.67 | 97.33333333 | CALCULATE ROI | |||||
2016 | 4.87 | 115.5555556 | (Dividends + Capital gain)/ Divided by the original Price | |||||
2017 | 5.07 | 127.6923077 | (D1 + (P1-P0)) / PO | |||||
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