Question
Just like an investor, select ten listed ordinary share companies from and create a portfolio. For instance, select 3 shares from list of Information Technology,
Just like an investor, select ten listed ordinary share companies from and create a portfolio. For instance, select 3 shares from list of Information Technology, 4 shares from Energy and 3 from Financials
- Using equity valuation methods taught in Week 6 and described in Chapter 10 calculate the value of each selected ordinary share investment in terms of your required rate of return.
Hint: To answer the question, you will need to calculate the value of the companies selected, and to do that you need to demonstrate that you have learnt something about equity valuation. In your analysis, consider valuing the shares using the ordinary share discounted dividend model and then the comparable approach to valuing ordinary shares. Consider the principles that will determine the value of a company in your report.
2. Rank the ten investments in order of desirability. Explain why you have ranked them in this way.
3.Which investment of the ten would you select? Why?
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