Yahoo Finance ("Historical prices"), what was the quarterly growth rate of dividends during 2013 (start of Nov. 2012 to end of Nov. 2013)? Part 2 What is Microsoft's quarterly discount rate? Part 3 What is Microsoft's intrinsic value according to the DDM formula, if you think that dividends will forever grow at the same rate as during 2013, and if we are in late November 2013? Part 4 Your boss thinks that this growth rate will last only for 3 quarters, and that growth will then settle dow

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
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Your boss wants you to value Microsoft common stock. Microsoft's market capitalization rate is 13% Part 1 Using historical data from Yahoo Finance ("Historical prices"), what was the quarterly growth rate of dividends during 2013 (start of Nov. 2012 to end of Nov. 2013)? Part 2 What is Microsoft's quarterly discount rate? Part 3 What is Microsoft's intrinsic value according to the DDM formula, if you think that dividends will forever grow at the same rate as during 2013, and if we are in late November 2013? Part 4 Your boss thinks that this growth rate will last only for 3 quarters, and that growth will then settle down at half the previous value forever. What is Microsoft's intrinsic value, given the assumption of your boss?

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