Select a publicly traded company that pays dividend. Go to www.yahoofinance.com and download the dividend data for the selected company and one of its competitors’ stock for the last 10 years (2012-2022). Use Excel to calculate annual dividends and the annual growth rate in dividends for the two companies. Questions: 1. Based on historical growth rates in dividend, will the forecasted growth in dividend be constant or non-constant? Explain.
Select a publicly traded company that pays dividend. Go to www.yahoofinance.com and download the dividend data for the selected company and one of its competitors’ stock for the last 10 years (2012-2022). Use Excel to calculate annual dividends and the annual growth rate in dividends for the two companies. Questions: 1. Based on historical growth rates in dividend, will the forecasted growth in dividend be constant or non-constant? Explain.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Select a publicly traded company that pays dividend. Go to www.yahoofinance.com and download the dividend data for the selected company and one of its competitors’ stock for the last 10 years (2012-2022). Use Excel to calculate annual dividends and the annual growth rate in dividends for the two companies.
Questions:
1. Based on historical growth rates in dividend, will the
Transcribed Image Text:Date
3/1/12
6/13/12
9/12/12
12/7/12
3/13/13
6/13/13
9/11/13
12/4/13
3/12/14
6/12/14
9/10/14
12/3/14
3/11/15
6/11/15
9/9/15
12/2/15
3/9/16
6/15/16
9/7/16
11/30/16
3/8/17
6/15/17
9/7/17
11/30/17
3/8/18
6/15/18
9/6/18
11/30/18
3/8/19
6/14/19
9/13/19
12/6/19
3/13/20
6/19/20
9/11/20
12/4/20
3/12/21
6/18/21
9/10/21
12/3/21
3/11/22
Average
Dividends
0.163
0.213
0.213
0.213
0.212
0.28
0.28
0.28
0.28
0.375
0.375
0.375
0.375
0.5
0.5
0.5
0.5
0.625
0.625
0.625
0.625
0.75
0.75
0.75
0.75
0.9
0.9
0.9
0.9
1.08
1.08
1.08
1.08
1.25
1.25
1.25
1.25
1.45
1.45
1.45
1.45
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
0.802
1.052
1.405
1.875
2.375
2.875
3.45
4.14
4.83
5.6
1.45
Growth Rate %
31.17%
33.56%
33.45%
26.67%
21.05%
20.00%
20.00%
16.67%
15.94%
-74.11%
14.44%
Transcribed Image Text:Date
3/8/12
3/8/13
3/10/14
3/10/15
3/9/16
3/8/17
3/9/18
3/8/19
3/9/20
3/9/21
6/7/21
9/7/21
12/6/21
3/8/22
Average
Dividends
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
1
1
1
1
1.12
Growth Rate %
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2400.00%
0.00%
0.00%
0.00%
12.00%
185.54%
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Please explain the rationale why "There is no constant growth in dividends" in your example?
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