Essays Tagged: "Dividend Discount Model"

Nike, Inc.

9Ke6.7031361%WACC = 0.0630587336.3059%A different approach to estimating the cost of capital is the dividend Valuation Model, which values a company using its dividends. Nike had a long dividend payou ... using its dividends. Nike had a long dividend payout history, therefore, an alternative model, the Dividend Capitalization Model, should also be used to determine Nike's cost of equity. It is true th ...

(5 pages) 876 0 5.0 Apr/2004

Subjects: Businesss Research Papers > Case Studies > Clothing, Footwear and Cosmetics

Nike Inc.: Cost of Capital

company's cost of equity using three different models: the Capital Asset Pricing Model (CAPM), the Dividend Discount Model (DDM) and the Earnings Capitalization Model (EPS/ Price), we analyze their a ... models used by those analysts who do not have complete confidence in CAPM. These approaches are the Dividend Discount Model (DDM), which compares dividends forecasted for the next period with the curr ...

(9 pages) 960 1 4.6 Oct/2006

Subjects: Businesss Research Papers > Case Studies > Clothing, Footwear and Cosmetics

Prada case solution

f Trinity brand) as benchmarks, propose a method to estimate Prada's cost of equity capital. Hint: "Dividend Discount Model" (RWJJ pp. 401-402). See Exhibit 10. Assume that dividends for these compara ...

(3 pages) 4 0 0.0 May/2014

Subjects: Businesss Research Papers