Calculate an estimated value of a share of the stock

Assignment Help Finance Basics

Reference no: EM132175109

Problem - Review the Sherwin-Williams example.

Use The Home Depot for analysis.

Write a 1-2 page (approximately 500 words) paper on the following:

Estimate a growth rate for your firm's Dividends per Share.

Assume a 12.5% discount rate.

Calculate an estimated value of a share of the stock using the constant-growth model (Eq. 8-6 in the textbook), also known as the Gordon growth model.

Compare and contrast your valuation results with the current share price in the market.

Respond to this question: What changes in the variables would be necessary in your valuation to best approximate the market valuation?

Reference no: EM132175109

Questions Cloud

Importance of understanding the needs : Explain the value and importance of understanding the needs, wants and preferences of target customer groups for a service sector industry.

Niform guidelines and selection procedures : What are some of the advantages and this advantages of top down scoring, including what the uniform guidelines and selection procedures

Differentiation and focus parts of the spectrum : Analyze an industry, stating the competitors at the low cost, differentiation and focus parts of the spectrum

Explore cultural phenomena where researcher observes society : Ethnography -is the systematic study of people and cultures. It is designed to explore cultural phenomena where the researcher observes society.

Calculate an estimated value of a share of the stock : Calculate an estimated value of a share of the stock using the constant-growth model (Eq. 8-6 in the textbook), also known as the Gordon growth model

What is the bond full price : The bond is currently trading at YTM of 5%. Assuming a 30/360 day-count convention, what is the bond's full (dirty) price

What steps would you take in the given situation : If you were a therapist and a patient from a different cultural background presented to you for treatment, what steps would you take to ensure that you provided

What can be a forth strategy : Generic strategies says there are only three competitive advantages: Low cost, differentiation and focus. What can be a forth strategy?

Identify a movie that has a racial or other minority issues : Identify a movie that has a racial/ethnic or other minority issue as a MAJOR theme in the movie. A good example of a movie with racial/ethnic issues as a major.

User Account

All Pages