The dividend discount model can be simply stated as the stock is worth the total of all the future dividend payments, discounted back to their present value. Select a publicly traded stock of a multinational enterprise. Calculate the value of the stock using the dividend discount model (DDM). Show you calculations and discuss any assumptions you used in this calculation, such as growth. On the discount rate assumption, reference source of discount rate and explain why you used that discount rate. An example source of discount rate is cost of capital information provided by analyst such as this July 31, 2020 cost of capital infographic (Duff & Phelps, 2020). You can use the 6% as an estimate of discount rate in the DDM.

If the dividend discount module cannot be used for your stock then use another valuation formula and explain why that formula was more appropriate for the stock. Compare your calculation to the current price of the stock. Is the stock currently trading at, above, or below your value calculation? Research and analyze why the stock may be trading at that value. Would you purchase this stock? Why or why not.