Answer Happy

You are an analyst for a U.S. pension fund. Your supervisor has asked you to value the stocks of A and B. You want to evaluate the appropriateness of the DDM model for valuing A and B and has complied the following data for the two companies for 2014 through 2021. A Year EPS ($) DPS (S) Payout Ratio EPS ($) DPS (S) Payout Ratio 2.17 1.15 0.53 4.94 2.00 0.40 0.52 5.03 2.00 0.40 0.52 3.35 2.00 0.60 0.51 -68.45 1.00 -0.01 0.50 1.00 -0.29 0.73 0.48 -18.50 2.00 -0.11 1.41 0.66 0.47 2.00 1.13 2014 1.27 0.57 0.45 6.68 2.00 0.30 For each of the stocks, explain whether the DDM is appropriate for valuing the stock. Briefly explain why or why not! 2021 2020 2019 2018 2017 2016 2015 1.99 1.76 1.61 1.55 1.51 1.03 0.91 0.82 0.77 -3.50
You are an analyst for a U.S. pension fund. Your supervisor has asked you to value the stocks of A and B. You want to evaluate the appropriateness of the DDM model for valuing A and B and has complied the following data for the two companies for 2014 through 2021. A Year EPS ($) DPS (S) Payout Ratio EPS ($) DPS (S) Payout Ratio 2.17 1.15 0.53 4.94 2.00 0.40 0.52 5.03 2.00 0.40 0.52 3.35 2.00 0.60 0.51 -68.45 1.00 -0.01 0.50 1.00 -0.29 0.73 0.48 -18.50 2.00 -0.11 1.41 0.66 0.47 2.00 1.13 2014 1.27 0.57 0.45 6.68 2.00 0.30 For each of the stocks, explain whether the DDM is appropriate for valuing the stock. Briefly explain why or why not! 2021 2020 2019 2018 2017 2016 2015 1.99 1.76 1.61 1.55 1.51 1.03 0.91 0.82 0.77 -3.50