Reference no: EM131184547
Managerial Finance
DQ
Using the data from the Intrinsic Value of a Firm assignment in this topic, provide a brief summary of your firm valuation models and outcomes. Address the assumptions implicit in the models themselves as well as those you made during the valuation process. Why might these estimates differ from the actual stick price today? Explain.
Assignment
Part One
Select a U.S. S&P 500 Company required to submit either 8-K, 10-Q, or 10-K U.S. Securities and Exchange Commission (SEC) reports. Before proceeding to Part Two, submit your firm selection to your instructor and obtain approval; completing this assignment without instructor approval will result in zero points for this assignment.
Part Two
Upon approval of your selected firm, use the most recent financial reports of the chosen firm to calculate the intrinsic value of the stock. For this assignment, you will use two valuation methods to derive the firm's intrinsic value; an equity valuation model (specified below) and the free cash flow (FCF). The following guidelines apply:
Go to https://www.treasury.gov and obtain the most recent 10-year Treasury yield rate as the risk-free rate;
Go to either Yahoo Finance or Google Finance to obtain the selected firm's current beta (β or beta coefficient);
Assume the expected market return is 10%;
Use the capital asset pricing model (CAPM) to calculate the required rate of return for equity financing purposes;
Make a realistic assumption about the g growth rate (g) and apply either a) the dividend growth model or b) nonconstant dividend growth model equity valuation methods to calculate the intrinsic value of the firm. (Note: If using the nonconstant growth model you must show a minimum of 5 years of future cash flows or future dividends);
Calculate the intrinsic value of the firm and stock price using the FCF valuation model. If the SEC filing provides the Weighted Average Cost of Capital (WACC), use the given WACC to value the firm and its intrinsic stock price. If the WACC is not provided, you must calculate the WACC finding necessary information to do so.
What are some of the major agents of socialization
: What are some of the major agents of socialization? Which do you think most influenced you? Why? Aside from childhood socialization, have you ever experienced other forms of socialization, such as anticipatory socialization and/or re-socialization? E..
|
Prepare the partners capital statement for the year
: During the year, drawings were Payne $8,700 and Dody $5,200. Net income was $28,700, and the partners share income equally. Prepare the partners' capital statement for the year and owners equity at dec 31 ,2017.
|
How did fromm theory differed from other theorists
: How did Fromm's theory differed from other theorists, discussed in module 2 reading? What was the main idea of his theory? How does Erikson define developmental crisis? What is the difference between problem-focused and emotion-focused coping strate..
|
Find surfaces of constant scalar values
: The gradient is perpendicular to surfaces of constant scalar quantities. Show how this property can be used to:
|
Compute the intrinsic value of the firm and stock price
: Calculate the intrinsic value of the firm and stock price using the FCF valuation model. If the SEC filing provides the Weighted Average Cost of Capital (WACC), use the given WACC to value the firm and its intrinsic stock price.
|
What sorts of logistical decisions will you make
: First, with your own Gregorc learning style (and characteristics) in mind,(my learning style is Abstract Random learner) write about how you might go about planning a trip to Europe. What sorts of logistical decisions will you make
|
Local government provide larger share of education spending
: State and local governments provide a larger share of education spending and a smaller share of welfare spending.- Is this a coincidence, or can you think of a reason for why this might be so?
|
How big will the window be
: How big will the window be if next four transmission brusts are all successful? Assume the maximum segment size is 1KB.
|
What were the skills required of nurse educators yesterday
: Explore the website "Creative Writing Now" to review the parameters for writing a haiku. What were the skills required of nurse educators yesterday, what are they today, and what will they be tomorrow?
|