Question 6: Calculate and draw 4-day relative strength index and tell implications: [5 Marks] Day 1 2 3 4 5 6 7 8 9 10 11 12 Close 59 56 54 53 53 50 52 50 51 52 50 58 Question 7: (a) What prominent factors do you need for industry analysis? Provide a suitable

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Question 4: Solve problems with DDM approach (both parts are independent): (A) Using 11% discount rate (req rate of return) and a projected growth rate of 8%, compute a constant-growth DDM value for XYZ's stock and compare the computed value for XYZ to its current stock price Rs 28 and mention under/overvaluation. It has EPS estimate of Rs 1.6 next year. The current book value per share is Rs 17.32, while current dividend Rs 1.2. [1 Mark] (b) ABC has projected 12% growth rate for the next three years and then 8% onwards. With a 11% discount rate, compute the value of ABC as per the dividend distribution model and compare it with current stock price Rs 28. Current dividend is Rs 1.2. [2 Marks] Question 5: Assume the following daily closings for NSE: a) Calculate a six-day moving average for Days 6 through 16 . [3 Marks] b) Assume that the index on Day 17 closes at 521 . Would this signal a buy or sell decision? [1 Marks] Ouestion 6: Calculate and draw A_dav relative stranut :... Question 7: (a) What prominent factors do you need for industry analysis? Provide a suitable example for each prominent factor/determinant. (b) Explain the principle of parsimony with respect to valuation. [6 Marks] (c) Mention the differences between Free cash flow to firm and free cash flow to equity. [2 Marks] (d) Mention types of bond issues. [2 Marks] [2 Marks]