1. Business
  2. Finance
  3. your task is to value the stock price of tornado...

Question: your task is to value the stock price of tornado...

Question details

Your task is to value the stock price of Tornado with the Dividend Discount Model (DDM) growth. You have the following information: Recent dividends per share (DIVo) Risk-free rate (rr) Beta of the stock (β) Average stock return on the market n Estimated long-term dividends growth rate g 5.32 3.75% 1.7084 10% 3% 1) Calculate the value of the stock of Tormado using the Dividend Discount Model (DDM stable growth. 2) The stock currently trades at 34.71 in the stock market; would you recommend buying it?
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution