Gordon Growth Model

HomeworkMarket.xlsx

Stock 1

Current Stock Price =	P0	$ 12.10	The intrinsic value of the stock is much less than the actual value, which is $66.44 as of 3/30/18
Current Dividend =	D0	$ 0.68	This is NOT a good stock to purchase, according to these statistics.
Dividend in 1 year =	D1	$ 0.76
Constant Growth Rate =	g	12%
Annual Required Rate of Return	r	6%
Dividends
2017	1,133,000	0.1086105675
2016	1,022,000	0.1368186874
2015	899,000
CAGR	12%
Dividends
2017	0.68
2012	1.35
CAGR Compound	12%
Date	Dividends
3/16/00	0.12
6/14/00	0.12
9/14/00	0.12
12/14/00	0.12	0.48
3/15/01	0.12
6/13/01	0.12
9/13/01	0.12
9/17/01	0.06
12/13/01	0.12	0.54
3/14/02	0.12
6/12/02	0.12
9/12/02	0.12
12/12/02	0.14	0.5
3/13/03	0.14
6/11/03	0.14
9/11/03	0.14
12/11/03	0.2	0.62
3/11/04	0.2
6/10/04	0.2
9/9/04	0.2
12/9/04	0.25	0.85
3/10/05	0.25
6/9/05	0.25
9/8/05	0.25
12/8/05	0.31	1.06
3/9/06	0.31
6/8/06	0.31
9/7/06	0.31
12/7/06	0.37	1.3
3/8/07	0.37
6/7/07	0.185
9/6/07	0.185
12/6/07	0.23	0.97
3/6/08	0.23
6/5/08	0.23
9/4/08	0.23
12/4/08	0.25	0.94
3/5/09	0.25
6/4/09	0.25
9/3/09	0.25
12/3/09	0.27	1.02
3/4/10	0.27
6/3/10	0.27
9/2/10	0.27
12/2/10	0.31	1.12
3/3/11	0.31
6/2/11	0.31
9/1/11	0.31
12/1/11	0.36	1.29
3/1/12	0.36
5/31/12	0.36
8/30/12	0.36
12/6/12	0.42	1.5
2/28/13	0.21
5/30/13	0.21
8/29/13	0.21
12/12/13	0.24	0.87
2/27/14	0.24
5/29/14	0.24
8/28/14	0.24
12/11/14	0.28	1
2/26/15	0.28
5/28/15	0.28
9/3/15	0.28
12/7/15	0.32	1.16
3/3/16	0.16
6/2/16	0.16
9/1/16	0.16
12/1/16	0.18	0.66

Intrinsic Stock Price =	P0	$15.38	The intrinsic value of the stock is much less than the actual value, which is $100.44 as of 3/30/18
Current Dividend =	D0	$0.84	This is NOT a good stock to purchase, according to these statistics.
Dividend in 1 year =	D1	$0.86
Constant Growth Rate =	g	2.29%
Annual Required Rate of Return	r	7.88%
Dividends
2017	2,445,000	6%
2016	2,313,000	-24%
2015	3,063,000
CAGR	-11%
Dividends
2017	0.84
2012	0.75
CAGR Compound	2%