Cost of Equity Assignment | Homework For You
June 2nd, 2020
1. Assume Do is current annual dividend per share listed in Bloomberg or from a different free source form the web.
2. Assume that in “first stage” (lasting 5 years), HD’s dividend per share grows by the “Next 5 years” growth estimate . (Be prepared to justify how would you choose this growth rate….)
3. Assume that HD’s dividend per share is expected to grow by x% per year = Mean Growth rate forever AFTER the five-year “first stage” growth is completed.
4. Calculate HD’s cost of equity. Compare it to the cost of equity from Bloomberg or from a different provider you found online. Attach the report you used.
Show formulas, calculations and interpretation. Have a nice table with your assumptions (CAGR using historical growth rates, independent analysts’ estimates, management guidance, most recent growth rate etc- like we did in class). Submit it in electronic format attaching screenshots from Bloomberg screens or from a stick research report where you got the data from.Get Finance homework help today
