Valuation Help

1. Choose a mature or value stock (in contrast to growth stock, mature stocks must have a low growth in EPS, low beta, low market/book ratio, low P/E, low Peg) that has not been chosen by other students.  Estimate its range of values, please look at the attached file for valuation of Royal Dutch Stock. If you choose a growth stock, you will get a negative value if you use mature stock formula. 

Hint: One way to estimate Ks of your chosen stock is to use CAPM as follow:

Ki = current 10-year Treasury bond note + betai* HMRP

Historical Market Risk Premium: use 6 to 7 %.

Another way is: D1/P0 + g

Another way is: Bond yield of your chosen company + 4%.