Reference no: EM13813849
You’re currently a buy-side analyst working for a big asset manager. You believe that investing in Disney (DIS) presents interesting opportunities for your fund: the share price is currently $118.80, earnings per share (last 12 months) are $4.65, and dividends per share are $1.32. While there is no consensus for the correct price of the stock, analysts agree that the appropriate discount rate for Disney is 12%.
A sell-side analyst at a prestigious investment bank estimates that the stock should trade next year for $121.33, and that dividends should grow by 15%. Using this information, compute the fundamental value of the stock. What do you think her recommendation would be?
A buy-side analyst at a big mutual fund has a different opinion. He thinks that next year dividend will be $1.4 per share, while the dividend in two more years will reach $1.7 per share, at which point the stock could be sold for $135. Using this information, compute the fundamental value of the stock. What do you think his recommendation would be?
A seasoned manager at a hedge fund specializing in growth strategies thinks differently. He believes that for a mature stock such as Disney you should use the Gordon growth model (GGM).
According to the Gordon growth model, which implicit growth rate of dividends is consistent with the current observed share price?
Which ROE does the market estimate in that case?
Funds rate of return to calvins investment situation
: Assume Calvin invests in a mutual fund that earns about 10% annually from dividend income and capital gains. Given that Calvin wants to receive $1,000 to $1,500 a month from his mutual fund, what would be the size of his investment account 5 years fr..
|
Managed care organizations and information technology
: The most important function of information technology (IT) for the managed care organization (MCO) is to support the business of the MCO.
|
Lightwave technology
: lightwave technology
|
How rise of big business affecte different group of american
: Consider how the rise of big business and industrial capitalism affected different groups of Americans and how those groups responded to these developments.
|
Rate of dividends is consistent with current observed share
: You’re currently a buy-side analyst working for a big asset manager. You believe that investing in Disney (DIS) presents interesting opportunities for your fund: the share price is currently $118.80, earnings per share (last 12 months) are $4.65, and..
|
Explain the potential personal liability to acme fireworks
: Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract. Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fire..
|
Summarizes any relevant facts about the project duration
: Summarizes any relevant facts about the project duration, number or type of resources, critical task sequencing, and how duration estimates were arrived
|
Assumptions needed for the completion of assignment
: Note: You may create and / or make all necessary assumptions needed for the completion of this assignment. Write a six to eight (6-8) page paper in which you:
|
The classifications from richardson and gosnay
: Briefly describe the company and product you have chosen, and why you chose it. Then explain what type of product it is based on the classifications from Richardson and Gosnay (2010).
|