Your firm requires all its analysts to use a dividend discount model (DDM) to value dividend-paying stocks. Using DDM, y

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Your firm requires all its analysts to use a dividend discount model (DDM) to value dividend-paying stocks. Using DDM, y

Post by answerhappygod »

Your firm requires all its analysts to use a dividend discount
model (DDM) to value dividend-paying stocks. Using DDM, you must
now value Participle Inc. The firm's dividend is expected to grow
by 6% per year in the future.
Participle Inc. characteristics
Beta


0.80
Last year's dividend / share
$ 1.75
Next year's dividend / share
$ 1.89
Market Capitalization Rate
8.50%
Calculate the intrinsic value of one share of Participle
stock.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”