Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help! See attached for questions. There are 7 questions. will pay for each question Instructions and Requirements You will select a firm/stock and perform

Please help! See attached for questions. There are 7 questions. will pay for each question

image text in transcribed Instructions and Requirements You will select a firm/stock and perform a Valuation and Investment Analysis. You must select one of the companies that you personally contributed to your team portfolio so that there is no duplication. You will make a recommendation based on your complete analysis. Your analysis should include (but is not limited to): 1. Your recommendation and 1 year target price. 2. An explanation of the key inputs and assumptions that support your financial analysis (such as industry and market share trends, end market growth rates, expected growth rates, profitability levels and trends, business drivers, risks, competition, etc.) 3. A valuation analysis of your selected firm. Use the Operating Free Cash Flow method and Relative Value method to arrive at the fair value of the company. This should include the use of appropriate historical ratios and forward ratios. Develop financial statement forecasts with key line items to support your analysis. 4. An explanation of your conclusion and how it compares to investor expectations for the company. 5. A recommended option hedging strategy based on your 1 year target price. Assume you own 1000 shares of the stock at the current market price. Select either a covered call strategy or a protective put strategy. Calculate the expected outcome in 1 year assuming the stock attains your 1 year price target. 6. A recommended Bull Call Spread or Bear Call Spread based on your 1 year price target. Calculate the expected outcome in 1 year assuming the stock attains your 1 year price target. Use 100 contracts for your option quantities. 7. The analysis will be 2-3 pages plus exhibits. Be sure to cite all sources of input. You must hand in 1 complete, printed report. In addition, you must submit your excel and word files electronically. 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jeff Madura

7th Edition

0134989961, 978-0134989969

More Books

Students also viewed these Finance questions

Question

Find f' in terms of g'. f(x) = g(x 2 )

Answered: 1 week ago