Question
Harman International (HAR) is an audio/video company. You wish to determine whether their current market price is too high. In order to accomplish this task
Harman International (HAR) is an audio/video company. You wish to determine whether their current market price is too high. In order to accomplish this task you will need to determine the following: Current Price (specify your source) Beta (specify your source) Risk Free Rate (use the current 10 year treasury rate) Risk Premium (Use the S&P 500 10 year mean return) Annual Dividend (Use the last 8 quarterly payouts. Specify your source) Expected Increase in the Stock Price (1 year from now. Explain your reasoning) Standard Deviation (for the past year) Once you have determined all of the above, calculate the following: K Implied Price (1 year from now) Z Score Probability Stock is Overpriced (see Table V in your text) Be sure to show all of your work and explain your conclusions.
I am doing MBA from CLU in California, 25 years old
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