Calculate the stock price using the dgm

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Stock price:

-??????????Use CAPM to estimate the stock price which will require you to calculate the beta (use Excel and the Slope?function) , return on the market and the risk-free rate

-??????????Also calculate the stock price using the DGM (check dividend growth over the last 5 years on Yahoo Finance to come up with your constant growth rate of dividends or alternatively a 2 stage dividend growth rate).

b)??????Market efficiency:

-??????????Chose a significant announcement and estimate its effect on the stock price

-??????????Comment on the impact of a recent dividend payment on the stock price

-??????????Discuss the company's current dividend policy

Reference no: EM133557675

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