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I need help with this assignment. I would like to use information from Microsoft Corporation and Apple. I have attached the rubric as well. MBAA
I need help with this assignment. I would like to use information from Microsoft Corporation and Apple. I have attached the rubric as well.
MBAA 518 - Managerial Finance Activity 3.5 (Due in Activity 4.5) Valuation of Stock using PE ratios Note: This activity will be submitted as Activity 4.5. However, it is recommended you begin to start work on this activity in Module 3. Most of the content necessary to complete the assignment is provide in Module 3. Submission of the assignment will occur in Module 4. There is also a discussion question in activity 4.6 related to this assignment. For this activity, you will need to select a publicly traded firm and a major competitor. Firms from any industry can be used. Go to reuters.com and for the firm you have selected obtain the trailing twelve-month P/E ratio for the firm, industry, and sector. (You can use other sources if you wish) Use information about your company's earnings and industry and sector's P/E s based on the P/E ratio value your selected firm as indicated in the example. If there is no earnings estimate, or the earnings estimate is negative, use earnings for a previous year. If that's also negative, pick another company for this assignment. There is an example of a partially completed table found here. Note: the example is only complete for one of the two firms indicated. Your submission must include the data for both firms. Boeing's data is included; therefore, Boeing cannot be used by any student. Lockheed-Martin is indicated as a competitor but no information is provided. Lockheed-Martin could still be used. Once you have completed the above write a short report discussing the valuation of your selected firm and competitor. Note if the current price is very close to \"Estimated share price based on TTM P/E and Earnings past 12 months.\" This should be very close if not you have likely done something wrong. How does the valuation of your firm compare to that of the competitors based on the P/E ratio? Why might this be the case? How does you firm's current price compare to the estimated price using the industry and sector P/E's compare both for the TTM and estimated year end? Is it higher or lower? Why might that be (provide one rational reason why)? Based on simple analysis which of the two firms (your selected firm and its competitor) appears to be undervalued? Why did you draw that conclusion? What do you suspect is the reason? Your submission will only need to be a single page to page and a half formatted with singlespaced, Times New Roman, 12 point font. Include a citation for where you retrieved the data and the date retrieved. A table following the example must be included in your submission but is not considered as part of the page to page and a half write-up. Get to the point in your write-up. There is no need for extra \"baggage.\" May 2015 1Step by Step Solution
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