Company on the main london stock exchange

Reference no: EM13932782

You will be given a company on the main London Stock Exchange. Discuss briefly the nature of activities of the company and its position in relation to the sector in an opening introductory page.

(a) Using weekly data of the last one year (31 Aug 2013- 1Sep 2014), estimate the market model for the share and interpret the outputs of these regressions.

(b) What is the yield curve? Discuss the main theories of the yield curve. Critically appraise the various possible uses of the yield curve in finance.

(c) Using the information from (a), (b) above, value the price of the share of your company as at 1 Sep 2014 using at least three alternative valuation techniques.

(d) Critically evaluate your results in (c) and with reference to academic literature and empirical research, advise which method of valuation you find appropriate for your company and make a buy, sell or hold recommendation on the company.

Good clear presentation, referencing, spelling and grammar.

Reference no: EM13932782

Questions Cloud

Aspects for e-commerce : Evaluation of how the above plan can be integrated in the overall business plan for'E'.Recommendation that incorporate the legal and ethical aspects for e-commerce that'E'should take into consideration.

Advantages and disadvantages of investing in stock market : Suppose that Sam invested his $1million in the commercial bond of the IntTrade Corp., they promised to pay him USD 230000 annually for 5 years, calculate the present value (PV) for this investment? What are the advantages and disadvantages of inve..

Cost or market rule to individual inventory items : Prepare the necessary journal entry, assuming the decline in value is immaterial.

Define the major branches of philosophy : Write a 700- to 1050-word essay that includes the following: Explain why one should study philosophy and what is its practical value? Define the major branches of philosophy

Company on the main london stock exchange : You will be given a company on the main London Stock Exchange. Discuss briefly the nature of activities of the company and its position in relation to the sector in an opening introductory page.

Standard deviation of the minimum variance portfolio : The stock of Bruin, Inc., has an expected return of 18 percent and a standard deviation of 32 percent. The stock of Wildcat Co. has an expected return of 10 percent and a standard deviation of 36 percent. The correlation between the two stocks is .36..

Option on a non-dividend-paying stock : Consider an option on a non-dividend-paying stock when the stock price is $30, the exercise price is $29, the risk-free interest rate is 5% per annum, the volatility is 25% per annum, and the time to maturity is four months.

Strategies for increasing self-esteem : From the e-Activity and textbook, choose two (2) of the six (6) strategies for increasing self-esteem as described in the textbook. Next, describe one (1) situation in which you used the two (2) strategies that you chose and determine if the two (..

Statements concerning net gifts are correct : All the following statements concerning “net gifts” are correct EXCEPT:

User Account

All Pages