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Assignment #2 Stock Valuation A. Choose a stock that interests you. Utilizing Bloomberg (or other financial websites) as a source of data, collect the following

Assignment #2 Stock Valuation A. Choose a stock that interests you. Utilizing Bloomberg (or other financial websites) as a source of data, collect the following information: a. Current stock price b. The last dividend paid (( c. The stocks Beta d. The annual expected growth rate of earnings (g) e. The market risk premium (Rm - Rf) f. The risk-free rate (Rf ) B. In Excel, use the Discounted Dividend Model for Constant Growth Stocks and solve for the intrinsic stock price () C. Based on your above calculations, compare the calculated price with the current market price and indicate whether the stock price is overvalued, undervalued, or at equilibrium? Explain. D. Now, assume that your company has just released a new product and will be experiencing supernormal growth of 25% for the next three years. In Excel, use the information in A and the Discounted Dividend Model for Nonconstant Growth Stocks and solve for the intrinsic stock price )

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