earEPSDividendChange 20130.75 20140.78 20150.81 20160.82 20170.85 20180.90 Payout Ratio:30% Required Rate of Return: 10% Current Stock Price P0:$5.00 1) Dividend amount in 2013: 2) Dividend CAGR: 3) 2019 Dividend: 4) Intrinsic value: 5) Compared to P0: 6) Required rate of return (solver or goal seek): The following table contains the six-year EPS history for Corporation X. The dividend payout ratio is 30%. 1) What is the dividend amount paid in 2013? 2) What is the compound growth rate (CAGR) of the dividend based on the dividend paid from 2013 - 2018? 3) Assume dividend is growing at the the compound growth rate of the dividend in 2019, what is the dividend per share paid in 2019? 4) Use dividend constant growth model, calculate the intrinsic value of the stock using a 10% required rate of return. 5) How does the calculated intrinsic value compare to the current stock price of $5? Use IF statement. 6) Use the Goal Seek or Solver option to find the required rate of return which will make the stock fairly-valued (i.e., intrinsic value = current stock price ($5 per share)
YearEPSDividendChange 20130.75 20140.78 20150.81 20160.82 20170.85 20180.90 Payout Ratio:30% Required
The following table contains the six-year EPS history for Corporation X. The dividend payout ratio is 30%.
1) What is the dividend amount paid in 2013?
2) What is the compound growth rate (CAGR) of the dividend based on the dividend paid from 2013 - 2018?
3) Assume dividend is growing at the the compound growth rate of the dividend in 2019, what is the dividend per share paid in 2019?
4) Use dividend constant growth model, calculate the intrinsic value of the stock using a 10% required rate of return.
5) How does the calculated intrinsic value compare to the current stock price of $5? Use IF statement.
6) Use the Goal Seek or Solver option to find the required rate of return which will make the stock fairly-valued (i.e., intrinsic value = current stock price ($5 per share)).
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