Summarize the trend in the dividend growth rates

Assignment Help Accounting Basics

Reference no: EM132880119

Dividend Analysis and Preliminary Valuation

In the Section 3: Dividend Analysis and Preliminary Valuation assignment, you will compute the of the company's stock value based on historical dividend data for your company and a market-based equity rate of return. In this analysis, you will use the constant growth formula to compute two estimates of the stock price, a high-end value and a low-end value. Analysts frequently assess the stock value using a range of values, based on reasonable assumptions for a high-end and a low-end range.
Once you have calculated two stock values, you will compare the company's calculated values compared to the current market price of the stock. This comparison will help you determine if the stock is currently under-valued or over-valued, and will help you determine your recommendation of buy, hold, or sell. Analysts prepare value estimates based on historical data for the company as well as an understanding of expected future equity rates of return. It is important to understand that the constant growth formula provides an estimate of value, and analysts, like all humans, can be both right and wrong. The inputs used in the formula will greatly impact the value conclusion.

Question 1: Create a table that illustrates the annual dividends per share paid by your selected company over the past 10 years. If the company has not paid dividends for 10 years, include as many years as available.

Question 2: Summarize the trend in the dividend growth rates.

Question 3: Have the dividend growth rates increased or decreased? By how much? Has the increase or decrease been steady or varied from year to year?

Reference no: EM132880119

Questions Cloud

How can the new product or service improve profitability : How can the new product or service improve profitability? Note: this is an estimation based on research of the company's current market position.

What is this bond time to maturity : A bond issued by Ford on May 15, 1997 is scheduled to mature on May 15, 2097. If today is November 16, 2002, what is this bond's time to maturity

What tax advice would you offer to calvin in planning : What tax consequences the interest and dividends will have along with the stock sale. What tax advice would you offer to Calvin in planning for this situation?

Leadership styles and organizational culture : Now that the change management plan has been completed, describe AGC's new leadership styles and organizational culture.

Summarize the trend in the dividend growth rates : Have the dividend growth rates increased or decreased? By how much? Has the increase or decrease been steady or varied from year to year?

Explain the different categories of intangible assets : Explain the difference between the allowance method and the direct write off method for accounts receivable. Document the method used for each

What is the amount for current tax expense : AAA Corp. has a 2020 accounting net income before tax of $90,000. What is the amount for 2021 Current tax expense

Leadership styles of shawn and john : What are the differences between the leadership styles of Shawn and John? What are the pros and cons of each style?

Explore the for loop and the while loop : How do you include a ‘loop' structure programming in Python? Explain when to use these different types of loops. Explore the for loop and the while loop.

User Account

All Pages