Slide 1General Electric (GE) OverviewDividend- Discount ModelDiscounted Free Cash Flow ModelStock Price ComparisonLAB 2By: Linda Che & Anna Carter-HernandezMay 19, 2017GENERAL ELECTRIC (GE) OVERVIEWCurrent stock price (last trade) = $27.43Current dividend amount= 0.96 (3.41%)Shares outstanding = 8.68BPayout Ratio = Dividends per share/Earnings per share = 87.85%Expected Growth Rate (Next 5 years) = 12.28%DIVIDEND- DISCOUNT MODEL Stock price = $17.48DISCOUNTED FREE CASH FLOW MODEL $25,018,000$32,188,000$50,798,000$45,971,040.72$41,602,751.79$37,649,549.13$34,071,990.16Stock price = $23.08STOCK PRICE COMPARISON Current stock price (last trade) = $27.43 Dividend-Discount Model Stock Price= $17.48 Discounted Free Cash Flow Model Stock Price= $23.08•The stock prices differ, as the current stock price from Yahoo! Finance is utilizing real-time trading data/information. Whereas, our estimates are simply based on averages and forecasting. •If the stock price is increasing, stockholders should plan to sell as to realize their gain from the growth
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