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Hand In Assignment Growth Rate

Hand In Assignment Growth Rate - Hand In Assignment#5(Due...

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Hand In Assignment #5 (Due April 14) 1. General Instructions Select a company that you think might be a good candidate for a constant growth in dividend company. Stock Name: Procter and Gamble Ticker: PG Current Stock Price: 69.90 Find the following information and calculate the growth rates as instructed. Send the paper as an attachment to an email. Use the subject Constant Growth and send to [email protected] . 2. Historical Growth Rate: Find the annual dividends for the period 2002 through 2007 (the most recent 5 years) and calculate the annual growth rates Year Dividend Annual Growth 2002 .76 2003 .82 .0732 2004 .93 .1341 2005 1.03 .1075 2006 1.15 .1165 2007 1.28 .1130 Calculate the compound annual growth rate over the period. .1099 or 10.99% What was your source for the dividends? Value Line
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3. Sustainable Growth Rate Find the ROE, the NI and the Dividend for the most recent completed five years. And calculate the sustainable growth rate for each year. Year ROE Div Net Income Sustainable growth rate 2002 .369 .76 5052 .2132 2003 .354 .82 5731 .2117 2004 .375 .93 6481 .2247 2005 .396 1.03 6923 .2349 2006 .138 1.15 8684 .0779 2007 .155 1.28 10340 .0897
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