This case can be used in undergraduate- and graduate-level finance courses to introduce the single-stage dividend discount model (DDM) as a relatively simple and intuitive valuation tool. The case can also be used in more advanced finance courses by placing more emphasis on the multi-stage component of the DDM valuation. After working through the case and assignment questions, students will be able to do the following: ·Assess the opportunities and risks associated with investment in a company's stock, considering strengths, weaknesses, opportunities, and threats. ·Reinforce financial statement analysis as an important tool for sizing up a company. ·Understand the key advantages and disadvantages, assumptions, and mechanics associated with using single- and two-stage DDMs to value a company's stock.

valuation; dividends; analysts; tariffs

Undergraduate/MBA

Manufacturing
United States
Large

7B20N012;