Find the market ratios for the company for the last 1-3 years and its major competitor for the last year in the Internet.

Price/Earnings ratio

Market/Book ratio (also called (Price/Book ratio)

Earnings per share

Dividends per share

Other market ratios on your choice

You can find these ratios in the Internet or calculate them. If you use published ratios you must indicate that and cite their source.

2. Present the market ratios as the table(s) in your project.
4. Explain in a few paragraphs of analysis of the market ratio results that you found. Compare the market ratio results against the industry or main competitor. In your report please answer the question: Are the common stockholders receiving an adequate return on their investment?

c.Compare the P/E ratio of your company with the industry average or 5-year average. Is the stock overvalued, undervalued, or properly valued? Why?In accordance with your findings, is it reasonable to buy the stock? Please explain your answers.

-2) Analysis of the historical stock prices trend for the last year. (10% of the project grade)

2. Collect and evaluate the data about stock prices of the assigned company for the last one year for the company and its major competitor.
4. Create the chart(s) using the stock price chart tools on the websites or Excel. Present the chart(s) in your project.
6. Explain in a few paragraphs page of analysis the historic stock prices trend for the last year.

3) Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on THE COMPANY stock. Note that you will needthe risk-free rate and the market return. Show this information in your project.

1. Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on stock. Note that you will needthe risk-free rate, beta, and the market return.

a) To get the current yield on 10-year Treasury securities go to www.finance.yahoo.com-click onMarkets - U.S. Treasury Bonds Rates.You will use the current yield on 10-year Treasury securities as the risk-free rate to estimate the required rate of return on stocks. Discuss how appropriate this rate is as a measure of risk.

b) Between 1926 and 2017, the compound annual rate of return of S&P 500 is estimated a 6.5%. We will use this number as the market return. Discuss how appropriate this rate is as a measure of return.

c) What is the beta listed for the company? What does it mean?

d)Calculate the required return on the stock using the Capital Asset Pricing Model (CAPM) Security Market Line. Please show your work.

2. There are several methods how to calculate the growth rate. One of the possible ways is to calculate the sustainable growth rate as g = ROE *(1- Dividend payout ratio).

Calculate the company's sustainable growth rate. Please show your work.

3. Apply the Gordon model (constant growth rate model) to calculate the intrinsic (economic) value of the stock. Please show your work.

Please note that for some companies it is not possible to use the Gordon model. If that is the case, please explain why it is not possible to use this model for your company. What other models is it possible to use?

4. Compare the result of your calculations with the current stock price. Is the stock overvalued, undervalued, or properly valued? Why?In accordance with your findings, is it reasonable to buy the stock? Why? Please explain your answer.

-5- Develop a specific recommendation, with supporting rationale for your client, as to whether the assigned company's recent trend in financial and stock performance is of sufficient financial strength to warrant entering in a long-term investment in bonds and/or stocks of the company. Explain your answer in a few paragraphs