Present value of expected dividends

Assignment Help Business Management

Reference no: EM13971443

Using the constant growth rate model (and data from Bloomberg) shows that the present value of expected dividends for the next five years for McDonaldAc€?cs is only about $1.98. Thus, over a forward-looking five-year horizon the value of the stock is $1.98. Yet on this same date McDonaldAc€?cs stock is selling among investors in the secondary market for $24.83 per share. How can such a large discrepancy in the two dollar values on the same date be explained?

Reference no: EM13971443

Questions Cloud

Portfolio context as opposed to being evaluated in isolation : Explain why a common stock should be evaluated in a portfolio context as opposed to being evaluated in isolation.

A sample of 12 people was asked how much change they had in : A sample of 12 people was asked how much change they had in their pockets and wallets. The responses (in cents) are 52 25 15 0 104 44 60 30 33 81 40 5 Determine the mean, median, and mode for these data. 4.2 The number of sick days due to colds and f..

Explain the life cycle process : It should be supported by the readings from Module 6 and at least two additional scholarly sources. The CSU-Global Library is a great place to find these sources! Ensure your paper adheres to CSU-Global Guide to Writing and APA Requirements.

What are pitfalls in interpreting the internal revenue code : What are pitfalls in interpreting the Internal Revenue Code? Which of the following indicates that a decision has precedential value for future cases?

Present value of expected dividends : Using the constant growth rate model (and data from Bloomberg) shows that the present value of expected dividends for the next five years for McDonaldAc€?cs is only about $1.98.

Describe several types of financial information : Describe the possible behavioral impact of Webster Corporation's segment managers if their performance is evaluated on the basis of the information in the annual financial report.

Copy the information from the previous page onto your answer : Copy the information from the previous page onto your answer sheet and place an X in the appropriate column to indicate whether each item is relevant or not relevant in the following situations. The company chronically runs at capacity and the old Mo..

Design a dfa which accept all the string over : Design a dfa which accept all the string over a and b ending with ab or ba

Whose relationships are broken down by a society : short story portrays events that occur in today's day and age as well. This struggle we read about all stemmed from the lack of the relationship from her mother and sister. Most of the focus of this short story is drawn to the women of the family..

User Account

All Pages