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Stock Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Beta 0.2 Ke* 0.1002 0.2250 0.1922 0.1458 0.1626 0.1242 0.2002 0.1122 0.1258 0.1818...

This question was answered on Jul 20, 2016. View the Answer

pls i need help with this case project and no plagiarism and no price increase

Stock Rank Beta Ke* V** 1 0.74 0.1002 $ 0.95 0.580% $ 10.06 2 2.3 0.2250 $ - -100.00% $ - 3 1.89 0.1922 $ - 0.00% $ - 4 1.31 0.1458 $ 1.25 8.50% $ 20.56 5 1.52 0.1626 $ 0.78 1.25% $ 5.20 6 1.04 0.1242 $ 0.06 -9.00% $ 0.28 7 1.99 0.2002 $ - -100.00% $ - 8 0.89 0.1122 $ - 0.00% $ - 9 1.06 0.1258 $ 6.22 0.98% $ 53.62 10 1.76 0.1818 $ 1.00 -0.48% $ 5.36 11 0.91 0.1138 $ - -100.00% $ - 12 1.8 0.1850 $ 0.25 2.10% $ 1.52 13 0.82 0.1066 $ 0.98 -2.00% $ 7.74 14 1.12 0.1306 $ 2.25 4.00% $ 24.83 15 0.99 0.1202 $ 5.80 -8.00% $ 28.97 16 1.01 0.1218 $ 1.02 13.00% $ (124.39) 17 0.67 0.0946 $ 6.00 5.00% $ 134.53 18 1.11 0.1298 $ - 0.00% $ - 19 0.78 0.1034 $ 1.00 9.00% $ 74.63 20 1.2 0.1370 $ - -100.00% $ - Treasury Bond Rate (historical) 4.10% Return on a Bond Market Index 12.10% * Ke is the required return on the common shares ** V is the value of the shares of common stocks QUESTION 1. Compare the values you calculated to each of the market prices for the top twenty stock picks. A 2. What are the implications of your analysis to Fred’s choice of stocks? Total Div, 2003 5-Year Div Growth
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Price 1/05/04 $ 14.89 $ 29.02 $ 18.83 $ 93.48 $ 67.29 $ 3.28 $ 9.00 $ 55.91 $ 98.47 $ 43.07 $ 37.55 $ 38.30 $ 76.33 $ 67.09 $ 193.05 $ 38.33 $ 71.11 $ 9.23 $ 19.53 $ 29.92 Are your calculations close approximations of the market prices? Why do you think there are differences?
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Case 8.xlsx

Stock Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 Beta
0.74
2.3
1.89
1.31
1.52
1.04
1.99
0.89
1.06
1.76
0.91
1.8
0.82
1.12
0.99
1.01
0.67
1.11
0.78
1.2 Ke*
0.1002
0.2250
0.1922
0.1458...

This question was asked on Jul 19, 2016 and answered on Jul 20, 2016.

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