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PART I: STOCK VALUATION Dividend from Financial Statements:

Can some help me understand how to calculate the ROI question number 3.


PART I: STOCK VALUATION

Dividend from Financial Statements:

Year (fill in what year you are using) Cash Div/share ($) Dividend Yield Stockholder's Equity (in millions) Stock Price

2013 1.16 2.30% 17,777 50.43478261

2014 1.56 2.20% 12,522 70.90909091

2015 1.88 2.30% 9,322 81.73913043

1. Stock Valuation - The new dividend yield if the company increased its dividend per share by 1.75

Year (fill in what year you are using) Cash Div/Share ($) +1.75 Dividend Yield Stockholder's Equity (in millions) Stock Price

2013 2.91 5.77% 17,777 50.43478261

2014 3.31 4.67% 12,522 70.90909091

2015 3.63 4.44% 9,322 81.73913043

2. The dividend yield if the firm doubled it's outstanding shares

Year (fill in what year you are using) Cash Div/Share ($) Dividend Yield Stockholder's Equity (in millions) -doubled Stock Price

2013 0.58 1.15% 35,554 50.43478261

2014 0.78 1.10% 25,044 70.90909091

2015 0.94 1.15% 18,644 81.73913043

3. The rate of return on equity (i.e., the cost of stock) based on the new dividend yield you calculated above

Year (fill in what year you are using) Cash Div/Share ($) +1.75 Stock Price Return on Investment

2013 2.91 50.43478261 CALCULATE ROI

2014 3.31 70.90909091 3.57% (Dividends + Capital gain)/ Divided by the original Price

2015 3.63 81.73913043 (D1 + (P1-P0)) / PO

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