Question
Can someone please help with this showing formulas?The spreadsheet must be set up with inputs. Risk free rate = 0.016 Market rate = 0.136 1.
Can someone please help with this showing formulas?The spreadsheet must be set up with inputs.
Risk free rate = 0.016 Market rate = 0.136
1. Harley-Davidsons information is below. Use it and the Two-stage Growth Model to find its intrinsic value. Forecast its cash flows for 2024 through 2027. If its currently selling at $36.00, is it over or undervalued?
2023 | 2024 | 2025 | 2026 | 2027 | |
Beta | 1.05 | ||||
Dividend | 0.80 | ||||
Growth rates | 0.170 | 0.106 | 0.106 | 0.106 |
2. Acuity Brands average P/E is 13.670. Its earnings per share is expected to be $13.66 a share. Find its intrinsic value. If its current price is $173.39, is it over or undervalued?
3. The average P/E of Buckles major competitors is 25.033. If its current EPS is $1.68 and its selling for $33.60 a share, is it over or undervalued?
4. Acuity Brands has a beta of 1.20 and a fixed dividend. If its current P/E is 15.3, is it over or undervalued?
5. Harley-Davidson has a variable dividend. Its beta is 1.05, its dividend payout ratio is 0.17, and its growth rate is 10%. Its current P/E is 8.8. Is it over or undervalued?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started