Discuss the company current dividend policy

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Reference no: EM133566653

All information can be found in internet and webside like yahoo finance

a) 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

c) Corporate governance:

- Agency problem: how is the CEO remunerated, total pay and how it is structured. Comment on whether?you consider the CEO's remuneration package is structured to provide the correct performance incentive.

Reference no: EM133566653

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