Market capitalization rate

Assignment Help Finance Basics
Reference no: EM1353529

The stock chosen is Johnson Controls INC (JCI). The calculations should be done in excel. Please answer the following questions.

Market Capitalization Rate.

What is your market capitalization rate?

What did you choose for a risk free rate? Why?

What did you choose for a market risk premium? Why?

How did you select/determine the appropriate beta?

Results.

How did you calculate your stock's intrinsic value? How did you arrive at a terminal value? What was your terminal value? What were your results?

How do your results compare to the stock's current price? According to your calculations, is your stock overpriced, underpriced, or correctly-priced?

Reference no: EM1353529

Questions Cloud

Explain how much does the total amount of deposits : Explain how much does the total amount of deposits in the banking system increase? By how much does the money supply increase.
Describe the practical applications for human resource : Describe the practical applications for Human Resource Professionals inclusive of what you learned compared to what you knew prior
Prominent global business leaders : This posting fully identifies prominent global business leaders, lists five personality traits, and connects them to personality theories of psychology.
Explain how are gains from trade shared among the parties : Explain how are the gains from trade shared among the parties to a trade. Is it possible for specialization and trade to increase total output of traded goods.
Market capitalization rate : The stock chosen is Johnson Controls INC. The computations should be done in excel. Please answer the following questions.
Express set as regular expression : Express the following set as a regular expression: The set of all strings of length at least three over {0,1} such that every three consecutive.
Creating a personality profile : This posting offers notes about creating a personality profile of a (known) superior business leader.
Difference between a short, medium and long term loan : Describe the difference between a short term, medium term and a long term loan. Use the following situations to describe the relative size of the interest rates charged on the following types of loans:
What is growth rates in follower nation : Japan's rapid growth pushed its real GDP per capita above that of the United States. Growth rates in follower nations such as South Korea and Hong Kong averaged about 10 percent per year.

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe zero cost collar

Using the option prices given below, give an example of a zero cost collar and describe how it could be used to hedge a long position in the underlying asset.

  Find the correct statement for allowance of loans

Find the correct statement for allowance of loans.

  Find the expected return and standard deviation

Ebenezer Scrooge has invested 60 percent of his money in share A and the remainder in share B. He assesses their prospects as follows:

  Objective type questions related to present and future value

Objective type questions related to present and future value of money and Market-determined required rate of return is the same thing as discount rate

  Present values of several cash flows

Evaluate the present value of a $270 cash flow for the following combinations of discount rates and times:

  Calculation of portfolio return and variance

Calculation of portfolio return and variance and standard deviation Use the Solver function in Excel to suggest different combinations of equity that will either provide the same return for less risk

  Explaining and comparing mutually exclusive projects

Explaining and Comparing Mutually Exclusive projects and Eads Industrial System Company is trying to decide between two different conveyor belt systems

  Calculation of implied growth duration of company

Calculation of the implied growth duration of company by using various parameters and What is the implied growth duration of Kayleigh Industries

  Determine the amount received by farmer

A farmer anticipates harvesting 50,000 bushels of wheat in September. How much money would the farmer earn from hedging by selling eight agreements of September.

  Pmt and nper functions in excel

At each question the solution cell must contain the Excel formula (Function) that produced the answer. Replace the existing numerical contents. Also add a brief explanation of how the answer was derived and the significance of the question in unde..

  Estimate value without leverage

Marpor Industries has no debt and expects to generate free cash flows of 16 million dollar every year. Marpor believes that if it permanently increases its level of debt to 40 million dollar,

  Computing net proceeds of an ipo

ABC is planning an IPO. Its underwriters say the stock the stock will sell at $20. The direct costs will be $800,000. The underwriters will charge a 7% spread. A - How many shares must be sold to net $30 million?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd