Conduct an independent analysis of the diversified energy

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Assignment

The company it needs to be done on in SCANA Corp an energy company. This info would be found in their financial documents.

Rate of Return on Equity

Resources: Corporate Financial Management

Conduct an independent analysis of the diversified energy company you selected for the other assignment.

Write a paper of no more than 1,050 words that addresses the following points:

Calculate estimates of the required rate of return on equity for the firm using both the capital asset pricing model and the standard DCF model.

Explain any data smoothing or adjustment techniques needed to make the data and results representative of current financial conditions.

How accurate do you feel these required return estimates are? Why?

Do you think the estimates could be made more accurate by using a proxy group of several similar companies?

How do market factors adjust these required returns for risk?

Over time, how will these required returns be affected by changes in interest rates, inflation, performance of the economy, and returns on alternative investments?

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Reference no: EM131105736

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