Stock valuation of hewlett-packard stock using of capm

Assignment Help Finance Basics

Reference no: EM1333188

A. Using the SML of the CAPM, calculate the required rate of return that would be approprite to evaluate the stock of Hewlett-Packard. Base the expected market return on the average S&P 500 rate of return over the last four years. Assume a beta of 0.95. (Use finance.yahoo.com for data, and put data on excel spreadsheet)

Using the required rate of return calculated in part (a) and the Discounted Cash Flow Model, calculate the intrinsic value of a share of Hewlett-Packard Stock. What assumptions, if any, was it necessary to make?

Reference no: EM1333188

Questions Cloud

Define human resource management : Define human resource management and What is the primary function of human resource management

Compute mean, standard deviation and cv of sales : Compute mean, standard deviation & CV of sales. The demand for MICHTEC's products is related to the state of the economy.

Convert structure plan into a function m-file : how to Convert the following structure plan into a function m-file with two inputs (M and N).

Graph the three total cost lines : Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (A) refurbish the old equipment at a cost of USD 800

Stock valuation of hewlett-packard stock using of capm : Using the required rate of return calculated in part (a) and the Discounted Cash Flow Model, compute the intrinsic value of a share of Hewlett-Packard Stock. What assumptions, if any, was it necessary to make?

Team function and listening form of communication : Business Management: Team function, listening form of communication - Based on the description above what skills can you share with us regarding achieving effective communication.

Reviewing different articles : Oral Immunotherapy Shows Promise for Children with Egg Allergy.Overweight and obese diabetics less likely to die

Illustrtae what is the growth rate of its real gdp : Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. Illustrtae what is the growth rate of its real GDP.

Find out p50 in mmhg : on the experimental data using built in Matlab function, polyfit. A

User Account

All Pages