Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

we have to select an existing stocks in the market in the egyptian stock market CASE 3 (12 marks): Select any Egyptian stock of your

image text in transcribed
we have to select an existing stocks in the market
image text in transcribed
in the egyptian stock market
CASE 3 (12 marks): Select any Egyptian stock of your choice. . Find out the value of the last dividend issued. Ascertain the growth rate of this corporation's dividends, using information from the corporation's financial statements, and assuming that the dividends grow at a constant rate. Assume your own required rate of return for the selected stock, given that the risk- free rate of retum in Egypt is currently 13%. Calculate the present value for this stock, using the constant growth rate ascertained earlier. Find out the market price of this stock and compare it to the present value you have calculated. State whether you should buy this stock or not and why. . . CASE 3 (12 marks): Select any Egyptian stock of your choice. Find out the value of the last dividend issued. Ascertain the growth rate of this corporation's dividends, using information from the corporation's financial statements, and assuming that the dividends grow at a constant rate. Assume your own required rate of return for the selected stock, given that the risk-free rate of return in Egypt is currently 13%. Calculate the present value for this stock, using the constant growth rate ascertained earlier Find out the market price of this stock and compare it to the present value you have calculated. State whether you should buy this stock or not and why. . . . CASE 3 (12 marks): Select any Egyptian stock of your choice. . Find out the value of the last dividend issued. Ascertain the growth rate of this corporation's dividends, using information from the corporation's financial statements, and assuming that the dividends grow at a constant rate. Assume your own required rate of return for the selected stock, given that the risk- free rate of retum in Egypt is currently 13%. Calculate the present value for this stock, using the constant growth rate ascertained earlier. Find out the market price of this stock and compare it to the present value you have calculated. State whether you should buy this stock or not and why. . . CASE 3 (12 marks): Select any Egyptian stock of your choice. Find out the value of the last dividend issued. Ascertain the growth rate of this corporation's dividends, using information from the corporation's financial statements, and assuming that the dividends grow at a constant rate. Assume your own required rate of return for the selected stock, given that the risk-free rate of return in Egypt is currently 13%. Calculate the present value for this stock, using the constant growth rate ascertained earlier Find out the market price of this stock and compare it to the present value you have calculated. State whether you should buy this stock or not and why

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

Project Finance In Theory And Practice

Authors: Stefano Gatti

3rd Edition

0128114010, 978-0128114018

More Books

Students also viewed these Finance questions

Question

Why We Listen?

Answered: 1 week ago