Compare your estimated stock prices with actual stock prices

Assignment Help Corporate Finance

Reference no: EM132252793

1. Using the two companies Nike and Adidas past dividend payout information between 2014 and 2018, compute the growth rate (g) for these companies.

2. First, let's assume that the required return (R) is 10% for all these companies. Using R, dividend information, and growth rate (g) from question 1, compute the stock prices of these companies. Second, let's assume that the required return (R) is 20% for all these companies. Using R, dividend information, and growth rate (g) from question 1, compute the stock prices of these companies.

3. Compare your estimated stock prices with actual stock prices as of January 2, 2019. Then tell me whether each stock is undervalued or fair-valued or overvalued based on your estimation. What's your decision if you hold these stocks? What's your decision if you don't hold these stocks?

4. Using annual stock price between 2013 and 2018, compute the following returns. For stock price data, use the closing price of the last trading day of the year:
1) Total Dollar Return for 2014, 2015, 2016, 2017, 2018
2) Total Percent Return for 2014, 2015, 2016, 2017, 2018

5. Using annual stock price between 2013 and 2018, compute the following returns. For stock price data, use the closing price of the last trading day of the year:
1) Arithmetic Average Return
2) Geometric Average Return
3) Holding Period Return
4) 2-year forecast Return (Hint: Blume's formula)
5) 3-year forecast Return (Hint: Blume's formula)

Reference no: EM132252793

Questions Cloud

What are the three parameters needed in the goal seek : What are the three parameters needed in the Goal Seek section of What-if Analysis? Explain each of them and what they do.

Analyze how the use of technology has impacted : Analyze how the use of technology has impacted organizational communication both positively and negatively.

Why is strategy implementation considered : Why is strategy implementation considered more difficult than strategy formulation?

Analyze tools and technologies to support the business : E-marketing-ECOM-301 : Prepare a market plan to launch a new product or Services for your business in the market.

Compare your estimated stock prices with actual stock prices : Compare your estimated stock prices with actual stock prices as of January 2, 2019. Then tell me whether each stock is undervalued or fair-valued or overvalued

What has made them successful : What has made them successful? (this can be school teams, workplace teams, social teams, etc).

Define how technology has been used to improve medical care : This week, please submit your project rough draft. Your rough draft should include the following items: Your project for this course is to develop a paper that.

Explain the role of ethics and social responsibility : Define and explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas.

Evaluate a set of suitable strategies : A strategic management plan addresses four different management functions: environmental scanning, strategy formulation, strategy implementation.

User Account

All Pages