1. Calculate the fair value based on the following information: Current dividend = $.90 = D0 Normal growth rate = 8% Super growth rate = 16% Duration of the super growth rate = 9 years Required return 13%
2. Use the “FED Model” for calculating the price with the following information. EPS of $3.5; bond yield of 6% (AA quality); growth in earnings of 4%. Assume C=0.10.
3. What you have learned about Fundamental Analysis of Valuation of common stock.
4. How would you apply fundamental approach to valuation for MacDonalds?