What are the principal assumptions used in the analysis


Assignment: Dividend Discount Model Valuation

Instructions & Recommendations for Preparing the Course

The purpose of this note is to carefully explain the general expectations and requirements for the Dividend Discount Model Valuation Assignment that is to be prepared. The information and materials presented here are intended to make sure that you clearly understand the general expectations and that there are no misunderstandings about what is to be done and what is expected.

Review this material so that you are familiar with the specific requirements that are be followed in the preparation and submission of the Assignment.

1. Dividend Discount Model Valuation - Using the constant growth dividend discount model formula prepare a valuation estimate of the common stock of the company that you selected. What are your findings? USE THE EXCEL MODEL PROVIDED BY PROF. STEVENS.

2. What are the principal assumptions used in the analysis? How do you defend them?

3. How does the estimated intrinsic value compare to the current market value of the stock? What explains the difference?

4. Do you believe that the dividend discount model is a useful approach to valuation? Why or why not?

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

Attachment:- Stock-Valuation-Model.rar

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