Question
Review the Sherwin-Williams example. Use The Home Depot for analysis. Write a 1-2 page (approximately 500 words) paper on the following: Estimate a growth rate
Review the Sherwin-Williams example.
Use The Home Depot for analysis.
Write a 1-2 page (approximately 500 words) paper on the following:
Estimate a growth rate for your firm's Dividends per Share.
Assume a 12.5% discount rate.
Calculate an estimated value of a share of the stock using the constant-growth model (Eq. 8-6 in the textbook), also known as the Gordon growth model.
Compare and contrast your valuation results with the current share price in the market.
Respond to this question: What changes in the variables would be necessary in your valuation to best approximate the market valuation?
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