Question
Please go to the following web site and find the stock information for International Business Machines Corporation (IBM): http://www.google.com/finance?q=ibm Recently a relative left you a
Please go to the following web site and find the stock information for International Business Machines Corporation (IBM): http://www.google.com/finance?q=ibm
Recently a relative left you a substantial amount of money, which you wish to invest. After the recent increasing gas prices, you have decided to invest in a company's stock in the technology and consulting industry. As you know there are several ways to determine the value of the stock. The information that you have been able to find on International Business Machines Corporation (IBM) allows you to see the companys P/E ratio, dividend yield, beta and EPS. The information that you have been able to find on International Business Machines Corporation (IBM) allows you to see the companys P/E ratio, dividend yield, beta and EPS.
1. Please list that information for IBM and the date you found the information. There are three methods you might use to determine the stock value of International Business Machines Corporation (IBM), Price-Earnings Method, Dividend Discount Method, and using CAPM to determine value.
2. Please tell me how in detail the information you have found might be used to determine the value of the stock in one of these three methods. Using any of these methods is based information for the company at a given time. The market is merging the economic, market and firm specific factors to determine the current value.
3. Which of these factors do you think is best to rely on for a long-term value of a firms stock and why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started