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Using the stocks in your initial portfolio, prepare a valuation of each stock and the initial portfolio using zero, constant or variable growth models with
- Using the stocks in your initial portfolio, prepare a valuation of each stock and the initial portfolio using zero, constant or variable growth models with a market return at 8% and at 12%. [Note that the growth rate must be less than the required rate of return.] Make sure you list the date of the valuation and the closing share price of your firms stock. Each firms required rate of return will depend on its beta.
- Is the stock of each of these companies over or undervalued?
- What is the expected return using the CAPM model?
- Prepare a time series ratio analysis (liquidity, activity, debt, and profitability). Identify any events during the period that may have caused the stocks prices to increase or decrease, explaining how these events affect the stocks prices.
- Wells Fargo Beta of 1.01
- Exxon Mobil Beta 1.17
- Verizon Wireless Beta 0.49
- Target Corporation Beta 0.28
- Activison Blizzard Inc Beta 0.98
*PLEASE USE THE INFORMATION BELOW:
Stock(s) Name | Number of share purchased | Stock(s) Price | Stock(s) Amount | Closing Price as of Jan 9th | Percentage Drop/Increase |
Well Fargo | 2500 | $52.73 | $131,825 | $52.79 | 0.11% |
Exxon Mobil | 2500 | $69.76 | $174,400 | $69.77 | 0.01% |
Verizon Wireless | 2500 | $58.85 | $147,125 | $59.00 | 0.25% |
Target Corporation | 2500 | $123.50 | $308,750 | $123.64 | 0.11% |
Activision Blizzaed Inc | 3000 | $59.34 | $178,020 | $59.79 | -0.90% |
The RF is 1.510%
*There is no time series data included. and we're assuming the stock prices stayed the same.
2017 and 2018 for the time series information.
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