Choose any 2 companies listed in Bursa Malaysia Main Market. (INARI AMERTRON BERHAD / TOPGLOVE / TASCO / UCHI TECHNOLOGIES BERHAD)

1) Discuss the business nature and performance of the companies in the past 3 years. Information can be sourced from companies’ annual reports, financial statements, news, companies’ press releases, analyst’s report, etc.

2) Download the monthly stock price for the selected companies, together with KLCI index for the last 10 years. For each stock, calculate:

(i) Average yearly rate of return

(ii) Standard deviation

(iii) Beta

Assume a portfolio of the two selected stocks with equal weightage, calculate:

(iv) Portfolio return

(v) Portfolio risk.

 

3) Determine the selected stocks’ intrinsic value by applying Dividend Discount Model (DDM) and Price-to-Earnings (P/E) method. Show and explain your method in determining risk-free rate, required rate of return, growth rate, and P/E.

 

4) Discuss the applicability and suitability of each method (DDM & P/E) in determining intrinsic value of the selected stocks.

 

5) Report structure in appropriate format with relevant tables, diagrams, figures, charts and reference list.

Answer rating: 100% (QA)

Quiz 1 Inari Amertron Berhad is a Malaysianbased company that is engaged in the manufacture and sale of semiconductor wafers and related services The company has been in operation for over 25 years an... View the full answer