Suppose you are given the following dividend information for Hamby Corp. Forecast the dividend for years 6,
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Suppose you are given the following dividend information for Hamby Corp.
Forecast the dividend for years 6, 7, 8, 9, and 10, using the method you proposed in question 43.
Question 43
Suppose you are an investment analyst and are interested in estimating the future dividend for Hamby Corp. You know that Hamby’s dividends grow at an exponential rate—that is,
where Dt is the dividend in year t, D0 is the dividend this year, and g is the growth rate of dividends (assumed to be constant). Is there any way to transform this model into a linear regression?
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Related Book For
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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