What are the prices implied by the constant-growth ddm what


Use appropriate software (e.g. BARRA's Aegis and Alphabuilder products) to determine the current dividend-to-price ratio, dividend growth, and beta (with respect to the CAPMMI) for GE and Coke. Using these data, a risk-free rate of 6 percent, and expected benchmark excess return of 6 percent, what are the prices implied by the constant-growth DDM? What is the dividend discount rate? Estimate alphas for GE and Coke using both methods described in the section "Dividend Discount Models and Returns."

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Portfolio Management: What are the prices implied by the constant-growth ddm what
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