Stocks Analysis
Visit finance.yahoo.com, do some research and choose any company that is paying dividends, has P/E and EPS. For the discount rate choose a rate between 2% and 10% and for growth rate choose a rate between: 1% and 6%. Then answer the following: a) Name of the company chosen, indicate stock quote price, stock quote symbol, EPS, Dividend amount and P/E. b) Explain why you chose that discount rate and growth rate for your stock. c) Calculate the companys value according to any of the two methods that we learned in class (Dividend growth model or P/E multiple). Pick only one method d) Compare the value that you have reached versus the quoted price of the stock, should you buy the stock or not? Why?