Calculate annualized dividend growth rate from five year

Reference no: EM132724888

Using the yahoo Finance web site ( finance .yahoo.com) get the current price and five year dividend history for PPG industries, inc,(NYSE: PPG) .use the same procedure as in the internet exercises of chapter 9 to gather this data. In addition, get the beta for PPG from its Summary page on yahoo Finance ,and the five year U.S treasury yield ( ticker:^FVX)note that you will need to divide the index value by 100 to get the yield.

Problem a. Calculate the annualized dividend growth rate from the five -year dividend history using the same procedure

Problem b. Using the stock 's current price, dividend, and growth rate, calculate the cost of retained earning for PPG

Problem c. Assuming that the average market return over the next five years will be8%, calculate the cost of retained earnings using the CAPM, use the actual beta and five year treasury yield (risk -free rate) in the model

Problem d. To get your final estimate of the cost of retained earnings, simply average the result from parts b and c

Reference no: EM132724888

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