write a 1-2 page double-spaced paper speculating on why the prices were differen
write a 1-2 page double-spaced paper speculating on why the prices were differen
write a 1-2 page double-spaced paper speculating on why the prices were different– did you have a wide range of growth rates, so you were very uncertain about future growth? Were your percentages varying, so you were uncertain about whether using an average percent was appropriate? Was the most recent year not representative of previous years? Also discuss in your paper your sensitivity analysis (i.e. the changes you made to your original models and the results), and the consequences the gap between WACC and the Terminal Growth Rate has on the stock price. To frame this analysis, please answer the questions based on the “Elements of Thought and Standards Applied to the Finance Project” (also included as a separate document which follows). By answering these questions in your paper, it will help you to think critically about your analysis and how you should articulate the results of the analysis. Please write this as a free-form paper rather than putting 1, 2, 3, etc. and answering the questions. Your grade will be based on doing this. Here is what you should include: A. What is your goal in doing the discounted cash flow analysis? B. What are the key questions you are trying to answer in this project? C. Does your evidence and data support the valuation of the company you analyzed? D. What techniques and concepts did you use to analyze and value your company? E. What assumptions did you make in coming up with your calculated value and stock price of your company? Why are your assumptions reasonable? F. What variables from that analysis showed the biggest effect on the stock price? As a result, what is your recommendation about the variables affecting the stock value? G. From what point of view are you analyzing the stock value? In other words, might there be some inherent biases in your overall analysis? I have attached the documents you need to complete this assignment.

Leave a Reply

Your email address will not be published.