Subject: Investments Portfolio Management

Q: Solve the following using Variable Growth Model;

C. Variable Growth Dividend Model Formula D D Po = (1 + K) ' (1 + K) Question Year Dividend 2006 5 2007 6 2008 7.2 2009 8.7 2010 9.8 2011 11 2012 12.1 2013 12.6 2014 13.1 g= 12.7% Dn 1 * (1 + K)n- (Ke+g) Growth rate 0.2 0.2 0.2 0.126 0.122 0.10 0.04 0.04 Ke = 10%