6) Using the dividend growth model estimate the current value of the stock. For the required rate of return use a rate of your choosing - it must be greater than the dividend yield. How does the price you calculate compare to the actual current stock price? 7) Select three additional pieces of information that you found interesting about the company and discuss them. This is a significant part of the assignment so do not skimp on this. 6 1) Company name 7 Symbol 8 Current price Johnson & Johnson JNJ 111.14 10 2) Current Assests 45,274,000,000 11 Current Liabilities 35,964,000,000 12 Current Ratio 1.3x 13 Total Assets 153,000,000,000 14 Total equity 60000000000 15 Total Debt Ratio 2.55 16 17 3) Net Income 4010000000 18 Total Revenue 81580000000 19 Profit Margin 0.049154204 20 21 4) Net Incom 4010000000 22 Total Assets 1.53E+11 23 Return on Assets 0.02620915 24 25 5) Quarterly Dividends in the past two years $0.90 $0.95 26 2018 27 2019 28 29 6) Divident per share $3.75 30 Required rate of return 6.77% 31 Divident growth rate 6.30% 32 value of stock 55.32843279 33 34
6) Using the dividend growth model estimate the current value of the stock. For the required rate of return use a rate of your choosing - it must be greater than the dividend yield. How does the price you calculate compare to the actual current stock price? 7) Select three additional pieces of information that you found interesting about the company and discuss them. This is a significant part of the assignment so do not skimp on this. 6 1) Company name 7 Symbol 8 Current price Johnson & Johnson JNJ 111.14 10 2) Current Assests 45,274,000,000 11 Current Liabilities 35,964,000,000 12 Current Ratio 1.3x 13 Total Assets 153,000,000,000 14 Total equity 60000000000 15 Total Debt Ratio 2.55 16 17 3) Net Income 4010000000 18 Total Revenue 81580000000 19 Profit Margin 0.049154204 20 21 4) Net Incom 4010000000 22 Total Assets 1.53E+11 23 Return on Assets 0.02620915 24 25 5) Quarterly Dividends in the past two years $0.90 $0.95 26 2018 27 2019 28 29 6) Divident per share $3.75 30 Required rate of return 6.77% 31 Divident growth rate 6.30% 32 value of stock 55.32843279 33 34
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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