Your firm requires all its analysts to use a dividend discount model (DDM) to value dividend-paying stocks. Using DDM, y
Posted: Wed May 18, 2022 11:20 pm
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.
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.