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Estimate target stock price using dividend-discount model

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Reference no: EM133068450

Question 1: Estimate the Target stock price using the dividend-discount model: find: 1) the current dividend; 2) analyst's estimate growth rate for the next five to ten years; 3) an alternative growth estimate using the firm's historical growth rate or the formula "g=ROE x b".

Question 2: Use your estimate of the cost of equity in the WACC for the rE part of your formula: Combine the above information into the dividend-discount model (DDM).

Question 3: Compare your result to the current market price of your firm's stock. Provide analysis and an explanation of how they compare and explain any differences you observe. Need in an excel format

Reference no: EM133068450

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