Calculate the intrinsic value of the firm

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Reference no: EM131245792

Details:
Part One

Selected DISH network which is required to submit either 8-K, 10-Q, or 10-K U.S. Securities and Exchange Commission (SEC) reports.

Part Two
Use the most recent financial reports of the DISH to calculate the intrinsic value of the stock. For this assignment, you will use two valuation methods to derive the firm's intrinsic value; an equity valuation model (specified below) and the free cash flow (FCF). The following guidelines apply:

1. Go to https://www.treasury.gov and obtain the most recent 10-year Treasury yield rate as the risk-free rate;

2. Go to either Yahoo Finance or Google Finance to obtain the selected firm's current beta (ß or beta coefficient);

3. Assume the expected market return is 10%;

4. Use the capital asset pricing model (CAPM) to calculate the required rate of return for equity financing purposes;

5. Make a realistic assumption about the g growth rate (g) and apply either a) the dividend growth model or b) nonconstant dividend growth model equity valuation methods to calculate the intrinsic value of the firm. (Note: If using the nonconstant growth model you must show a minimum of 5 years of future cash flows or future dividends);

6. Calculate the intrinsic value of the firm and stock price using the FCF valuation model. If the SEC filing provides the Weighted Average Cost of Capital (WACC), use the given WACC to value the firm and its intrinsic stock price. If the WACC is not provided, you must calculate the WACC finding necessary information to do so.

7. Use the attached "Intrinsic Value of a Firm" resource to present your results and to provide your rationale for your choice of equality valuation model. Note: You must show your calculations to complete this assignment successfully.

8. Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

Reference no: EM131245792

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