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I need help in my financial management class. If its ok for you to teac me how to do it and provide examples please. I
I need help in my financial management class. If its ok for you to teac me how to do it and provide examples please. I can not upload my instructor files to see his examples so I am asking for help
Phase 3 IP Template Step 1 Bond A-Rated B-Rated C-Rated Company / Rating Face Value (FV) Coupon Rate $ 1,000 $ 1,000 $ 1,000 Annual payment (PMT) Time-toMaturity (NPER) Step 2 Company Company 1 Company 2 Company 3 5-year Risk-Free Rate of Return (Rf) Beta 5-Year Return on Top 500 Stocks (k) Required Rate of Return (CAPM) CAPM = Rf + Beta * (k - Rf) Step 3 Company Company 1 Company 2 Company 3 Current Dividend Required Project Growth Rate of Rate (next Return year) (g) (CAPM) (k) Estimated Stock Price (Gordon Model) Current Stock Price Current Stock Price Over/Under Priced Gordon Model = (Current Dividend * (1 + g)) / (k - g) Step 4 Company Company 1 Estimated Earnings (next year) (EPS) P/E Ratio Estimated Stock Price (P/E) Company 2 Company 3 Estimated Stock Price (P/E) = EPS * P/E Ratio References Yield-toMaturity (RATE) Market Value (Quote) Discount, Premium, Par AAA Maturity Today Days Years 5 years ago (PV) Over/Under Priced Current (FV) BBB CCCStep by Step Solution
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