Valuation Analysis of Costco

1. Valuate the stock using dividend discount model and multi period dividend discount model.

2. Collect data for stock (you are assigned) price, market price (S&P 500 Index), risk-free rate (using 3-month T-bill rate). Hint: Collect adjusted stock price (Pi) and the S&P 500 Composite Index Price (Pm) from Yahoo Finance (use monthly frequency data series more than 10 years), collect three-month T-bill rate (Rf=TB3MS) from Economic data-FRED (Links to an external site.) ® (Attention: TB3MS is an annualized time series). Construct stock returns and market returns using stock price and market price. Provide descriptive statistics for the risk-free rate, stock returns and market returns (including mean, median, standard deviation, maximum, and minimum).

Use this links to support your answers:
- https://consent.yahoo.com/v2/collectConsent?sessionId=3_cc-session_d0ba28fa-9379-4a4c-a8f8-73c5a027b625
- https://fred.stlouisfed.org/
- https://www.govinfo.gov/app/collection/erp
- https://www.federalreserve.gov/monetarypolicy/beigebook/beigebook2007.htm
- https://apps.bea.gov/scb/index.htm
- https://www.federalreserve.gov/monetarypolicy/mpr_default.htm