VALUATION ASSIGNMENT

1.Federated Investors' beta is 1.25, and it has paid a $1.00 dividend for many years.If its current price is $26.52, is it over or under valued?

2.Use the information below to find Connecticut Water's intrinsic value. If its current price is $57.00, is it over or under valued?

Beta

0.65

2017 dividend

$2.20

Growth rate

0.045

3.Use the information below to find Connecticut Water's intrinsic value.Forecast its cash flows for 2018 to 2020.If its current price is $57.00, is it over or under valued?

2017

2016

2015

2014

EPS

$2.20

DPO

0.53

0.54

0.54

ROE

0.11

Beta

0.65

P/E

23.3

17.6

17.5

4.Use the two-stage growth model and the information below to determine whether Brooks Automation is over or under valued if its current price is $20.88.Forecast the company's cash flows for 2018 to 2020.

2017

2018

2019+

Beta

1.20

ROE

0.13

0.12

DPO

0.36

0.37

Dividend

$0.40

5.Federated Investors' has a 2017 EPS of $2.00.Its most recent P/Es are 14.5, 20.0, and 20.8.Use the P/E as an earnings multiplier model to find the stock's intrinsic value.If it is currently selling for $26.52, is it under or over valued?