the companys dividend history from finance.yahoo.com or the companys own website. 2) the companys market risk exposure measured by Beta (5Y Monthly) from the companys summary page on finance.yahoo.com 3) choose an estimation period for the required return R, at least going back a 5-year period. 4) risk-free rates (annual rates) for the estimation period 5) monthly market index (use S&P 500) Adj Close prices for the estimation period

Part I. calculate required return R 1) Calculate risk-free rate using average of the annual 3-Month Treasury Bill interest rates over the estimation period. 2) Calculate the monthly market return =( Adj close at the end of month Adj close at the end of pervious month)/Adj close at the end of previous month 3) Calculate annualized market return = average monthly return 12 4) Use the formula to calculate required return R= risk-free rate + beta*(annualized market return - risk-free rate). Part II. 1) Estimate the growth rate of dividends from dividend history data. There is no specific formula for estimating g using historical data. You can use the most recent growth rate, the average growth rate for the past 5 -years, or your own model. 2) Use the Constant Growth Model in the (a case of the Dividend Discount Models): Intrinsic Value =D0(1+g)/(Rg) where D0 is the current annual dividend, and R is the required return we estimated in part I. Part I. calculate required return R 1) Calculate risk-free rate using average of the annual 3-Month Treasury Bill interest rates over the estimation period. 2) Calculate the monthly market return =( Adj close at the end of month Adj close at the end of pervious month)/Adj close at the end of previous month 3) Calculate annualized market return = average monthly return 12 4) Use the formula to calculate required return R= risk-free rate + beta*(annualized market return - risk-free rate). Part II. 1) Estimate the growth rate of dividends from dividend history data. There is no specific formula for estimating g using historical data. You can use the most recent growth rate, the average growth rate for the past 5 -years, or your own model. 2) Use the Constant Growth Model in the (a case of the Dividend Discount Models): Intrinsic Value =D0(1+g)/(Rg) where D0 is the current annual dividend, and R is the required return we estimated in part