E.I. du Pont de Nemours and Company: Common Stock Valuation
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A brief company history and an overview of the valuation analysis are presented prior to the presentation of the valuation models and results. Five common stock valuation models are applied in developing a reasoned valuation of DuPont's common stock. These models are the constant growth dividend model, the variable growth dividend discount model, the price/earnings (P/R) multiple model, the constant dividend model and the total yield model. The concluding discussion evaluates the valuation models and considers the implications for the company of the reasoned valuation of the company's common stock.
From the Paper:"Variable Growth Dividend Discount Model. The valuation of a common stock through the application of the variable growth dividend discount model is a three-step process. The first step involves finding the present value of the dividends expected to be paid on the common stock in the initial growth period. The second step involves finding the discounted value of the common stock at the end of the initial growth period. The third step involves adding together the two present value amounts to determine the present value of the common stock."
Cite this Research Paper:
E.I. du Pont de Nemours and Company: Common Stock Valuation (2003, April 24) Retrieved April 08, 2020, from https://www.academon.com/research-paper/e-i-du-pont-de-nemours-and-company-common-stock-valuation-26054/
"E.I. du Pont de Nemours and Company: Common Stock Valuation" 24 April 2003. Web. 08 April. 2020. <https://www.academon.com/research-paper/e-i-du-pont-de-nemours-and-company-common-stock-valuation-26054/>