Reference no: EM13924988
Stock Valuation
A. Choose a stock that interests you. Utilizing Bloomberg, Yahoo Finance, Google Finance, etc. as a source of data, collect the following information:
a. The stock's Beta
b. The rate of return on the market (S&P 500 Index)
c. The risk-free rate ( )
d. The last dividend paid ( )
e. The annual expected growth rate of earnings
B. In Excel, use the Discounted Dividend Model for Constant Growth Stocks and solve for the intrinsic stock price(^)
Based on your above calculations, compare the calculated price with the current market price and indicate whether is the stock price overvalued, undervalued, or at equilibrium? Explain.
C. Now, assume that your company has just released a new product and will be experiencing supernormal growth of 25% for the next three years. In Excel, use the information in "A" and the Discounted Dividend Model for Nonconstant Growth Stocks and solve for the intrinsic stock price^).
|
Part of assessing the writing situation
: Review your reading about the writing situation, and write a 100-200 word essay-style response. Consider the following questions as a guide for constructing your response: What part of assessing the writing situation, finding your subject, definin..
|
|
Almond corporation
: Almond Corporation, organized on January 3, 2013, had pretax accounting income of $14 million and taxable income of $20 million for the year ended December 31, 2013. The 2013 tax rate is 35%
|
|
Explain how the credit portfolio study would facilitate
: Explain how the credit portfolio study would facilitate or assist the liquidity management of the financial institution or bank.
|
|
Essential elements of an enforceable contract
: Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why. Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforc..
|
|
Compare the calculated price with the current market price
: Based on your above calculations, compare the calculated price with the current market price and indicate whether is the stock price overvalued, undervalued, or at equilibrium? Explain.
|
|
Explain how the credit portfolio approach is reflected
: Hypothetical Bank Ltd's credit portfolio comprises only two customers. Explain how the credit portfolio approach is reflected in the calculation of regulatory and economic capital.
|
|
Society played important role in how people are wearing fur
: The society has played an important role in how people are wearing fur. In the 1970's and 1980's it was very common for women to wear mink fur coats every day.
|
|
Nancy is single and has been planning
: Explain to Nancy why (generally) her check was not for $4,000.
|
|
One right will be issued for each share of outstanding stock
: You currently own 6 percent of the 2 million outstanding shares of Webster Mills. The company has just announced a rights offering with a subscription price of $40. One right will be issued for each share of outstanding stock. This offering will prov..
|