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Please do parts B and C ; provide screenshot of excel cells and formulas please! thanks Assignment #2 Stock Valuation Collect the following information from
Please do parts B and C ; provide screenshot of excel cells and formulas please! thanks
Assignment #2 Stock Valuation Collect the following information from the stock of AAPL The stock's Beta The rate of return on the market (S&P 500 Index) The risk-free rate() The last dividend paid () The annual expected growth rate of earnings B. In Excel, use the Discounted Dividend Model for Constant Growth Stocks and solve for the intrinsic stock price () Based on your above calculations, compare the calculated price with the current market price and indicate whether is the stock price is overvalued, undervalued, or at equilibrium? Explain. C. Now, assume that your company has just released a new product and will be experiencing supernormal growth of 25% for the next three years. In Excel, use the information in "A" and the Discounted Dividend Model for Nonconstant Growth Stocks and solve for the intrinsic stock price). UTAN - . B D E 1 Assignment #2 Stock Valuation 2 The stock I chose is Apple (AAPL). 3 4 A. - Apple's Stock Beta is 1.19 5 B. - The Rate of Return on the market is 17.43% 6 C. - The Risk-Free Rate is 2.9129999 (the yield on a 10 yr. treasury bond) 7 D. - The most recent dividend yield is $0.22 (quarterly) 8 E. - The annual expected growth rate of earnings is 10.5% 9 10 11 Year Dividend Terminal Val PV of Divide PV of Terminal Vall 12 1 13 2 14 3 15 4 16 Intrinsic Value o Assignment #2 Stock Valuation Collect the following information from the stock of AAPL The stock's Beta The rate of return on the market (S&P 500 Index) The risk-free rate() The last dividend paid () The annual expected growth rate of earnings B. In Excel, use the Discounted Dividend Model for Constant Growth Stocks and solve for the intrinsic stock price () Based on your above calculations, compare the calculated price with the current market price and indicate whether is the stock price is overvalued, undervalued, or at equilibrium? Explain. C. Now, assume that your company has just released a new product and will be experiencing supernormal growth of 25% for the next three years. In Excel, use the information in "A" and the Discounted Dividend Model for Nonconstant Growth Stocks and solve for the intrinsic stock price). UTAN - . B D E 1 Assignment #2 Stock Valuation 2 The stock I chose is Apple (AAPL). 3 4 A. - Apple's Stock Beta is 1.19 5 B. - The Rate of Return on the market is 17.43% 6 C. - The Risk-Free Rate is 2.9129999 (the yield on a 10 yr. treasury bond) 7 D. - The most recent dividend yield is $0.22 (quarterly) 8 E. - The annual expected growth rate of earnings is 10.5% 9 10 11 Year Dividend Terminal Val PV of Divide PV of Terminal Vall 12 1 13 2 14 3 15 4 16 Intrinsic Value o Step by Step Solution
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