CLASS / COURSE: Corporate Finance

QUESTION DESCRIPTION:

Pick a company that pays dividends, then calculate the expected growth rate of your company using the CAPM.

Once this task is complete, calculate the expected growth rate using the Constant Growth (or Gordon Growth) Model.

You may need additional information to complete this exercise. You can find a stock's beta and growth rate at http://quote.yahoo.com/. Once there, enter the ticker for the company in question. Then, click on Key Statistics about halfway down the left hand side of the page. You can find the beta here.

Alternatively, you can go to http://www.reuters.com/. Click on at the top left of the page. Enter the ticker symbol for the company in question. Click on about halfway down the left hand side of the page.

SOLUTION DESCRIPTION: Completed Solution is attached. Click on Buy button and then download file to get full solution.

SUBJECTS / CATEGORIES:
1. Finance
2. Financial Management
3. Corporate Finance