FIN 534 week 4, discussion NEW 2015

We're the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click either of the buttons below to place your order.


Order a Similar Paper Order a Different Paper

Need by 7pm

RISK & RETURN

Discussion 1: Risk and Return

 

A. Assume that you own a sizeable investment portfolio that is invested exclusively in a broad-based stock market index fund.  Assume also that you contemplate adding a sizeable investment in the stock of the WALMART company.  What will happen to the overall riskiness of the portfolio, and why, with the addition of the new investment?  What specific indicators support your conclusion?  Should you make the additional investment – why or why not? 

 

.

 

B. Using the WALMART company, value a share of the company’s stock using both the (1) constant growth dividend discount model, and (2) a discounted free cash flow model, and compare those values to the current trading price of a share of the stock?  Is the stock undervalued or overvalued?  Carefully explain the assumptions used in the valuations and the rationale for your response?

 

 An Excel-based Dividend Discount Model is provided if you want to use it (see attached file).

 

 You may use http://www.valuepro.net for the discounted free cash flow valuation model.)  Alternatively, you may use the Excel-based Discounted Cash Flow Valuation Model (file attached).

 

 Make sure that the presentations discuss the assumptions used in the valuations and present the results of the valuations with comparisons to the existing stock price.

 

 Note: See the information at ValuePro.net and for an Excel Dividend Discount Model template.

 

DDM Stock Valuation Models 012714.xls 

 

DFCF Valuation Model 0714.xls 

 

 

Writerbay.net

Do you need academic writing help? Our quality writers are here 24/7, every day of the year, ready to support you! Instantly chat with a customer support representative in the chat on the bottom right corner, send us a WhatsApp message or click either of the buttons below to submit your paper instructions to the writing team.


Order a Similar Paper Order a Different Paper
Writerbay.net