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hi - I tried to search for the attached question, but was unsuccessful, please help as to what i need to do for the attached

hi - I tried to search for the attached question, but was unsuccessful, please help as to what i need to do for the attached assignment.

image text in transcribed Option #2: Stock Valuation Mini-Case Study Choose three sets of two companies featured in the Standard & Poors' 500 index which are in the same sector. Use the following link to the SPDR Index Heat Map to ensure the firms are in the same sector. Heat Map link: http://www.sectorspdr.com/sectorspdr/tools/sector-tracker/components Complete the following: Report and compare the P/E ratios of each of the two selected companies. Describe how you would classify theseas a value investment or a growth firm. Compare your firms to the total sector and indicate your preference of each pair. If three of these constitute a portfolio for your investment purposes, indicate what your preferences are for return. Discuss what type of investor will have the same expectations regarding return. Include an appendix containing all ratio calculations including a note on the numerator and denominator used. Option #1: Risk and Return Study Attached is a spreadsheet that has the annual return measured for 12 different stock investments. The spreadsheet shows the average return and standard deviation of the return for the past 15 years. Use this spreadsheet and spreadsheet commands to do the following: 1. 2. 3. 4. 5. 6. Compute the return for each year on a portfolio that contains an equal investment in all 12 securities. Compute the 15-year average return and standard deviation of return for the portfolio that consists of all 12 securities with equally weighted investment. Compute the correlation and covariance between the return on company #12 and the return on the equally-weighted portfolio. Hint: There is a spreadsheet command that does this calculation. Compute the beta of Company #12 using the information you have collected. Now using the beta you created for Company #12, compute the required rate of return using the Capital Asset Pricing Model (CAPM), assuming that the average market return is the return of your equally-weighted portfolio and the risk-free rate of return is 2.5%. If you were told analysts estimate that Company #12 will have a 5% rate of return next year, would you buy the stock? Why or why not? Your submission should meet the following requirements: Complete your work on the Excel sheet provided. Be sure to keep your formulas or commands in the cells on your Excel sheet. Include any brief explanatory remarks needed, on the Excel sheet. Option #2: Primary Cash Flows Find a recent press release from a company included in the Dow Jones industrial average which indicates a major expansion project. You will likely be able to review press releases through Yahoo or Google Finance and/or through the review of 8K releases from the company itself. What are the primary cash flows relevant to this project? Is it an international project, and are there currency issues associated with the project itself? Is there an indication of the time horizon of the project? With respect to potential options, do you see any the company should consider that are not mentioned? Finally, what competitive considerations should be discussed

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