ABC Company growth rate
ABC Company operates 18 brands. The dividend yield trailing twelve months is 0.784%, and it’s current market price per share is USD $50.89. The company group 's year to date return is -25.89%.
date | Price per share (USD $) | Dividend per share (USD $) |
2019 Dec | 68.87 | 1.18 |
2018 Dec | 56.82 | 1.1295 |
2017 Dec | 67.17 | 1.0292 |
2016 Dec | 50.24 | 1.0884 |
2015 Dec | 50.65 | 1.0488 |
2014 Dec | 53.08 | 0.9735 |
(a)Calculate according to the Constant Growth Model, the ABC Company's growth rate using the provided historical data
(b)Suppose the company is expected to grow at the rate calculated in (a) for 3 more years, and thereafter, grow at a rate of 5% for the foreseeable future. What is the current value of ABC company common stock to an investor who is able to earn 5.8% from investments with a similar level of risk? The beta of ABC Company is 0.92.
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