Evaluate the value of one share of gis stock

Assignment Help Cost Accounting

Reference no: EM132229

Question:

General Mills (NYSE: GIS) is a large distributor and manufacturer of package consumer food products. Benoit Gagnon, a buy-side analyst covering General Mills, has studied the historical growth rates in sales, earnings, and dividends for GIS, and also has made projections of future growth rates. Gagnon expects the current dividend of 1.10 per share to grow at 6 percent for the next 2 years, and that the growth rate will decline to three percent and remain at that level thereafter.

The risk-free rate is 4%, the market risk premium is 6%, and GIS's beta, consider to be 0.50.

Evaluate the value of one share of GIS stock using Dividends Valuation Approach.

Reference no: EM132229

Questions Cloud

Compute the amount vernas pension expense : Compute the amount Verna's pension expense for 2013 and prepare the related journal entries.

How to write basic structure of an exception handler : How to write basic structure of an Exception handler a. generate an abstract class Furniture b. Declare an abstract process Discount the returns no value but accepts the cost of item

Determine sarahs deductible transportation expense : Determine Sarah's deductible transportation expense, using the actual expense method.

What will be formula of digital certificate of the server : Point out what will be the formula of digital certificate of the server N. we denote the public and private keys of server N as K+ ,N KN, and public or private keys of CA are denoted as K+ CA KCA.

Evaluate the value of one share of gis stock : Evaluate the value of one share of GIS stock using Dividends Valuation Approach.

What is home wireless network and security : What is home wireless network and security Methodology- Review topics covered in lecture hours, from textbook, reference books plus online research, to behaviour a comprehensive study about wireless network security implementation at home.

Evaluate incorporation plan : Except the stock sale is an integral part of the incorporation plan

How to write a class named dayofyear that gets an integer : How to write a class named DayOfYear that gets an integer Day 2 would be January 2 Day 32 would be February 1 Day 365 would be December 31

How many cars in every team called chevy and ford : How many cars in every team called Chevy and Ford There are eight cars in every team called Chevy and Ford. One car from each team races its opponent on drag strip.

User Account

All Pages