Value of ford using the dividend discount model

Assignment Help Financial Management

Reference no: EM132006573

Determine the value of Ford Using the Dividend discount model. You can find the current dividend on Yahoo finance. Don't forget to compute g using the retention ratio and return on equity. Also compute the required rate using the CAPM with the Yahoo beta. Use 3.08% for the risk free rate and 3.5% for the RISK Premium (pay attention to what I am giving you here. Using these assumption. What is your required rate? What is your growth assumption? What is the value of Ford? Is this reasonable? If not what does the market assume will be the growth rate of dividends going forward if Ford is priced at $11?

Beta 0.03

Dividends & Splits

Forward Annual Dividend Rate4 N/A

Forward Annual Dividend Yield4 N/A

Trailing Annual Dividend Rate3 N/A

Trailing Annual Dividend Yield3 N/A

5 Year Average Dividend Yield4 N/A

Payout Ratio4 0.00%

Dividend Date3 N/A

Ex-Dividend Date4 N/A

Last Split Factor (new per old)2 1/2

Last Split Date3 Dec 24, 1997

Reference no: EM132006573

Questions Cloud

Identify the main objective of managing cash flows : Identify the main objective of managing cash flows.

Type of economics statistics app : The price of a subscription to each type of economics statistics app is ?$44 per? year, and the subscription to each office productivity app is ?$40 per year.

Explain what you uncovered in your analysis : Prepare a memo, addressed to the Lending Committee of ABC Bank, where you explain what you uncovered in your analysis.

Tax reduction multiplier effect : Using economics why is the government spending multiplier effect is larger than the tax reduction multiplier effect?

Value of ford using the dividend discount model : Determine the value of Ford Using the Dividend discount model. What is your growth assumption? What is the value of Ford? Is this reasonable?

What is the marginal rate of substitution for consumer A : Suppose there are two consumers, A and B. What is the marginal rate of substitution for consumer A at the competitive equilibrium

Discuss the concept behind the pricing strategy : Ryanair, Europe's first low-fare, no-frills airline, has grown into one of Europe's largest and most profitable airlines. Using Ryanair as your frame.

Gdp deflator be less than 100 after the base year : Under what circumstances would the GDP deflator be less than 100 after the base year?

What was the remaining balance of mortgage : Assuming that he had already made his mortgage payment that day what was the remaining balance of the mortgage?

User Account

All Pages