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Need help on these answers for Southwest: Stock Valuation (Matching content: Unit 7) If the company issues dividend, conduct a valuation of your company's stock
Need help on these answers for Southwest: Stock Valuation (Matching content: Unit 7)
- If the company issues dividend, conduct a valuation of your company's stock by using DDM model.
- If the company doesn't issue dividend, please use the price multiple approach. (Will provide you more details during the semester.)
- What are the key "value drivers" for your company? (Identify the key assumptions or variables that influence the value of your company the most. The examples would include the growth rate assumptions, the growth period assumptions, etc.)
- Evaluate your company against a carefully selected list of its comparables and/or regression analysis. Choose a multiple that you think is the most appropriate for comparing the firms in your group/sector.
- Based on your valuation results, what "should" the stock price of your company be? How do you explain the difference between your estimated stock price and its actual stock price?
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Step: 1
1 Valuation using DDM model Dividend Discount Model To conduct this valuation you need information about Southwests dividends growth rate and discount ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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