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    Weekly Assignment 4 - Mohit Sharma - 55

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    amyna abhavani
    This document contains numerical calculations related to dividend growth models. It provides current and projected dividend amounts, stock prices, required rates of return, and present value calculations for multiple companies over time periods ranging from 3 to 15+ years. The goal appears to be calculating the intrinsic value of stocks based on expected future dividend growth.

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    Weekly Assignment 4 - Mohit Sharma - 55

    Uploaded by

    amyna abhavani
    12 views2 pages
    This document contains numerical calculations related to dividend growth models. It provides current and projected dividend amounts, stock prices, required rates of return, and present value calculations for multiple companies over time periods ranging from 3 to 15+ years. The goal appears to be calculating the intrinsic value of stocks based on expected future dividend growth.

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    © © All Rights Reserved

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    XLSX, PDF, TXT or read online from Scribd

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    This document contains numerical calculations related to dividend growth models. It provides current and projected dividend amounts, stock prices, required rates of return, and present value calculations for multiple companies over time periods ranging from 3 to 15+ years. The goal appears to be calculating the intrinsic value of stocks based on expected future dividend growth.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    12 views2 pages

    Weekly Assignment 4 - Mohit Sharma - 55

    Uploaded by

    amyna abhavani
    This document contains numerical calculations related to dividend growth models. It provides current and projected dividend amounts, stock prices, required rates of return, and present value calculations for multiple companies over time periods ranging from 3 to 15+ years. The goal appears to be calculating the intrinsic value of stocks based on expected future dividend growth.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    Answer - 1 Current Dividend (per share) $ 1.

    45
    Dividend growth rate 0.06
    Required rate of return 0.11
    Current Stock Price $ 30.74

    Stock Price in 3 Years $ 34.54

    Stock price in 15 Years $ 69.50

    Answer - 8 Current Stock Price $ 93.00


    Current Dividend (per share) $ 4.75
    Required Rate of return 5.1075269

    Answer - 13 Dividend growth rate 0.05


    Required return (for first three years) 0.15
    Required return (for next three years) 0.13
    Required return (thereafter) 0.11
    Most recent dividend $ 1.00

    Dividend for 1st year $ 1.05


    Dividend for 2nd year $ 1.10
    Dividend for 3rd year $ 1.16
    Dividend for 4th year $ 1.22
    Dividend for 5th year $ 1.28
    Dividend for 6th year $ 1.34
    Dividend for 7th year $ 1.41
    Dividend for 8th year $ 1.48
    Dividend for 9th year $ 1.55

    Present Value of dividends for first three years


    PV1 $ 0.91
    PV2 $ 0.83
    PV3 $ 0.76

    Present Value of dividends for next three years


    PV4 $ 0.75
    PV5 $ 0.69
    PV6 $ 0.64

    Present Value of dividends thereafter


    PV7 $ 0.68
    PV8 $ 0.64
    PV9 $ 0.61

    Current Share Price $ 6.52

    Answer - 16 Years 1 2 3 4
    Dividend 12 8 7 2.5
    Dividend growth rate 0.05 0.05 0.05 0.05
    Required rate of return 0.12 0.12 0.12 0.12
    Present Value Dividend $ 10.71 $ 6.38 $ 4.98 $ 1.59

    Dividend in fifth Year $ 3.19


    Present Value Dividend in fifth Year $ 45.58

    Present value of dividends $ 69.24

    Answer - 18 Dividend growth rate (for 3 years) 0.3


    Dividend growth rate (for following year) 0.2
    Dividend growth rate (thereafter) 0.02
    Required rate of return 0.1
    Current stock price $ 76.00

    Current Dividend $ 83.60


    Dividend Growth Rate 0.1

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