Assignment 1:
Pick 4 companies from investing.com and calculate their expected returns using a simple "Gordon growth model" and using the nominal growth rate of the economy for the company growth rate. Discuss your assumptions and findings.
Assignment 2:
- Take your companies from Assignment 1. Pick one.
- Calculate their betas. Discuss.
- Calculate their cost of equity using the CAPM.
- What is their implied growth rate given these expected returns? Discuss your findings.
Once you choose a company, please copy the link and put below for me. For each calculation, please write down the formula and where do you get those numbers from. Thanks a lot!