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hw_6.pdf

HW 6 – Equity Valuation

In this homework, you will use discounted dividend growth model and discounted free cash flow model to estimate the equity value of the company you/your team selected. This will be a primary element of the quantitative analysis in your final project.

Recommended Steps:

o Download monthly prices of the past 5 years from Yahoo Finance o Use Regression (A) in Excel and determine beta and the cost of equity o Download related financial variables from Bloomberg, as specified in “Data

Download(B)” worksheet, calculate WACC o Copy and paste related variable into the equity valuation model: worksheet C

and worksheet D, and derive your projected equity price from both models o Submit the entire Excel file (including worksheet A, B, C, D)through

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