Question
Use the following information on Disney to answer the case questions. Disneys current stock price is $140.00 per share. The average growth rate of the
Use the following information on Disney to answer the case questions.
- Disneys current stock price is $140.00 per share. The average growth rate of the companys dividend has been 17.7% from 2004 through 2018.
- Disneys return on equity is 28.0% and the company retains approximately 80.0% of its profits while paying out the remaining 20.0% in dividends.
- The companys stock currently trades at 21.21 times its current year earnings estimate of $6.60 per share.
- Analysts expect the company to earn $6.19 per share in 2020 and $6.93 in 2021.
- Disneys peers in media networks trade at 25.5 times their current-year earnings estimates while peers in parks, experiences and consumer products at 21.9; studio entertainment at 19.1 and DTCI at 14.1.
- Assume the expected return for Disneys stock is 6.9%.
What is the Constant Growth Model, the Multi-Stage Growth Model, Discounted Dividend Model, and Market Multiples Approach?
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Principles Of Taxation For Business And Investment Planning 2023
Authors: Sally Jones, Shelley Rhoades-Catanach, Sandra Callaghan, Thomas Kubick
26th Edition
1264229747, 978-1264229741
