Securing Higher Grades Costing Your Pocket? Book Your Coursework Help at The Lowest Price Now!

  • +1-617-874-1011 (US)
  • +44-117-230-1145 (UK)
Online Customer Service

MPF753 Finance : Despite the Concerns in CAPM

Questions:

You are required to apply Gordon’s model in estimating the cost of equity capital of a firm using real data drawn from a financial database.

a)Choose four Australian listed companies (one each from four different sectors) that have been in business for at least the last ten years. Access Morningstar Datanalysis Premium via the Deakin library (refer to the Assignment Part – 2 instructions document). Download onto a spreadsheet the last ten years of dividend payments history for each of your four chosen companies.

a) All interim dividends must be appropriately annualized before adding up with the year-end final dividends in order to determine the true dollar value of yearly dividends received by the shareholders. For companies that have paid interim dividends, assume that those dividends were paid at the end of the first half of the year and therefore earn six months of interest at a risk-free rate for the next half. The current Australian Government 10-year bonds rate is 2.88% p.a.
 
b) After determining the dollar dividends received by shareholders for each of the past ten years, compute and justify a proxy annual constant growth rate of dividends to be used in Gordon’s model. Use your computed proxy annual constant growth rate to predict next year’s dollar dividend value.
 
c) Finance and look up the closing price of each of your four chosen stocks Use Gordon’s model to solve for the expected return on equity for each of the stocks. Do these expected return figures appear justified given the nature of the business, the overall market conditions and the industrial sectors within which each of your chosen companies operate?
 
d) What do you feel are the most serious methodological problems associated with Gordon’s model? Carry out a review of relevant financial academic literature and identify at least two alternative cost of equity estimation methods. Can these identified methods be better than Gordon’s model? Argue your case.

Buy MPF753 Finance : Despite the Concerns in CAPM Answers Online

Talk to our expert to get the help with MPF753 Finance : Despite the Concerns in CAPM Answers to complete your assessment on time and boost your grades now

The main aim/motive of the management assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignments. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at urgenthomework.com are so much skilled, capable, talented, and experienced in their field of programming homework help writing assignments, so, for this, they can effectively write the best economics assignment help services.

Get Online Support for MPF753 Finance : Despite the Concerns in CAPM Assignment Help Online

Resources

    • 24 x 7 Availability.
    • Trained and Certified Experts.
    • Deadline Guaranteed.
    • Plagiarism Free.
    • Privacy Guaranteed.
    • Free download.
    • Online help for all project.
    • Homework Help Services

Tap to Chat
Get Instant Assignment Help
Tap to Chat
Get Instant Assignment Help