Assume your firm buy TWO (2) stocks, please name of the stocks either local or foreign. Analyse
Question:
Assume your firm buy TWO (2) stocks, please name of the stocks either local or foreign. Analyse the expected return and standard deviation for each of stocks and portfolio. Please refer to the current market price (actual price from Bursa Malaysia or any exchange trade). You have to decide how many shares to invest in each of these stocks.
Create your own probability, expected return and your standard deviation.
b) You company buy TWO (2) more stocks, one is common stock and the other one is preferred stock. You have to evaluate all the FOUR (4) stocks according to the Discounted Dividend Model (DDM) - zero growth, constant growth rate and variable growth rate and preferred stock valuation. You must name each of the stock and the stock price must according to current market price.
Then calculate the value of each stocksand analyse either each stocks are undervalued or overvalued bonds.
c) Your company buy TWO (2) bonds either locally or foreign bond. You have to evaluate these bonds. Find the actual price, the interest rate and the coupon rate for these bonds.
Then calculate the value of the bond and analyse either both bonds are undervalued or overvalued bonds.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill