Purposes:

1. To understand the principles and applications of business finance as related tothe stock valuation analysis 2. To obtain information on past annual dividends and stock prices and forecast the current and future stock prices

Each student is required to perform the following activities:

1. From an appropriate online source (e.g., newspaper, SET-Stock Exchange of Thailand), select a public company in any commodity (or market sector), such as, finance, health care, real estate, energy, etc.

2. From the selected company, obtain information on past annual dividends and average stock prices for the past 10 years (i.e., 2011-2020). The past data should not be less than 5 years. If the company paid dividends more than one time per year, add the dividends paid during each year to be its annual dividend.

3. Analyze the past annual dividends to determine the trend of past dividends and determine if the zero growth model or constant growth model can be assumed.

4. From the assumed model, estimated the dividend to be paid at the end of 2021. Use the estimated dividend to be the dividend just paid and the end of year 2021 to be the end of year 0.

5. Assuming that the required return is 4 % per year, predict the current stock price (at the end of 2021) and the stock price at the end of year 5 (or 2026).

The source of information, analysis of past dividends, and stock valuation computations must be described in details. Snapshots of computer screens where stock information is shown should be attached in the report.