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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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