Finance Assignment | Professional Writing
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.
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