Question: Description: For this simulation, your group was given $100,000 to invest. Instructions Prepare a three to five page report (single spaced, but with paragraphs, sections,
Description:
For this simulation, your group was given $100,000 to invest.
Instructions Prepare a three to five page report (single spaced, but with paragraphs, sections, headers - - title page and any appendices do not count towards page total) that outlines:
- The value of the portfolio at the beginning of the simulation and at the end of the simulation.
- Identify any dividends that your portfolio would have received during the period (assume you held them for one full quarter) and include them in the total above.
- Prepare a table showing the current share price, dividend yield, EPS, P/E ratio, and Div Payout Ratio for each stock in your portfolio (you may either calculate or look up attmxmoney.com, globeandmail.com, or yahoo finance, for example);
- In the table in #3 above, include a ranking of each stock in your portfolio from 1 to N (one being best long term prospect and N being poorest likely long term expectations). Provide a paragraph below the table identifying what criteria you used to determine long term expectations.
- For two of the stocks in your portfolio write a commentary on if you think it would be a good long term investment or not and why (perhaps pick your best and worst long term prospects).
- Include a paragraph describing if you think your portfolio was well diversified or how you might be able to improve the diversification of your overall investment.
- Use one of: the dividend model, dividend growth model, or the PE Ratio to calculate what you think the share price for one of your companies would be using present value of cash flows. Briefly comment on if you feel this company is fairly priced compared to your calc.
Marks are awarded for professionalism of report formatting and appearance, spelling, and grammar.
The value of the portfolio at the beginning of the simulation and at the end of the simulation.
In this simulation, a $100,000 investment is used.
Telus section
Beginning of the simulation = $20,000.00
End of the simulation = $19,723.73
Total Dividend = $293.49
Total value (including dividends) = $20,017.22
Despite a small drop in the share price (-$276.27), a dividend of $293.49 was received, part of Telus' net gain:$17.22.
Waste Connections Inc. (WCN)
Beginning of the simulation(CAD): $20,000.00
End of the simulation: $21,630.09
Total Dividend: $30.22
Total value(including dividends): $21,660.31
Amazon:
Beginning of the simulation = $20,000
End of the simulation = $17,344.80
*Amazon does not pay any dividends so no dividend income was received during the investment period.
Costco:
Beginning of the simulation:$20,000
End of the simulation:$20,179.17
Total Dividend:$25.14
Total value(including Dividends):$20,204.61
Portfolio Key Indicators table:
| Expected ranking(1 to N) | Stock | Share price | Dividend yield | EPS | P/E ratio | Div Payout Ratio |
| TELUS (T) | $20.44 | 7.873% | $0.67 | 30.51 | 240% | |
| WCN | $277.38 | 0.55% | $3.24 | 85.72 | 29.96% | |
| AMZN | $190.26 | 0% | $3.24 | 58.7 | 0% | |
| Costco | $929.75 | 0.499% | 17.12 | 54.66 | 0.27 |
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