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1. Go to Find NYSE MarkeTrac and click on the DJIA ticker tape, which shows trades for the stocks in the Dow Jones Industrial Averages. Stop the tape at GE. What are the latest price, dividend yield, and P/E ratio?

2. Look up General Mills, Inc., and Kellogg Co. The companies' ticker symbols are GIS and K.

a. What are the current dividend yield and price-earnings ratio (P/E) for each company? How do the yields and P/Es compare with the average for the food industry and for the stock market as a whole? (The stock market is represented by the S & P 500 index.)

b. What are the growth rates of earnings per share (EPS) and dividends for each company over the last five years? Do these growth rates appear to reflect a steady trend that could be projected for the long-run future?

c. Would you be confident in applying the constant-growth DCF valuation model to these companies' stocks? Why or why not?

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  • Category:- Basic Finance
  • Reference No.:- M91890839

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