Dividend Analysis: Make sure your selected company issues dividend on annual basis. Ifyou could not find annual dividend, just add all quarterly dividend in same year to findrespective yearly...

Dividend Analysis: Make sure your selected company issues dividend on annual basis. Ifyou could not find annual dividend, just add all quarterly dividend in same year to findrespective yearly dividend. Now you will use “variable-growth dividend valuationmodel” to analyze price of stock. Look page # 316. Show detail of dividend valuationmodel in excel workbook and highlight your answer. Explain your answer in detail, i.e.,interpret value of stock that you found from your analysis. Helpful videos and excelworkbooks are posted along with this case study for your assistance. These videos showstep-by-step process of finding: sales growth using historical sales data, WACC, TaxRate, Cost of Debt, Cost of Equity etc. [Hint: (1) Chapter 8 power-point page # 35 showshow to calculate “Dividend growth rate” using arithmetic and geometric averages. (2)Using dividend payout ratio find retention rate (rr) and find “Sustainable Growth Rate(g)” using ROE & retention rate. Use “g” as a firm’s growth rate. (3) For “discount rate(r)” WACC method is most appropriate, but you will need to first calculate ‘cost ofequity’ and ‘cost of debt’. I have posted videos on how to calculate cost of equity andcost of debt. (4) Also, find “discount rate” using CAPM and compare with “discountrate” obtained using WACC method.]Chapter 7 Part:
Find publicly traded company with 5 years of historical financial records. You will need annualBalance sheet and Income statement of this company. Look page # 268 and 269 for Balancesheet and Income statement model. With these accounting information you will calculateseveral different ratios and interpret these ratios in brief (use separate paragraph tointerpret these ratios).