Research current Wall Street market information and calculate the required rate of return and the value of
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Question:
Research current Wall Street market information and calculate the required rate of return and the value of the following companies:
- Coca Cola
- Manzana
-Microsoft
1.- Compare the value calculated by the Gordon Model with the current market value of these companies.
2.- Explain why these differences.
3.- Explain why these results as well as the differences between the three companies
4.- In which of them would you invest and why?
Here is the data provided: Thank you!!
| Date | S&P500 | Coca Cola | Apple | Microsoft | R S&P 500 | R Coca Cola | R Apple | R Microsoft |
| 01/04/18 | 2,705.27 | 37.181835 | 39.386456 | 88.26181 | ||||
| 01/05/18 | 2,752.06 | 37.001133 | 44.536777 | 93.2827 | 1.71% | -0.49% | 12.29% | 5.53% |
| 01/06/18 | 3,044.31 | 37.741161 | 44.287437 | 93.468987 | 10.09% | 1.98% | -0.56% | 0.20% |
| 01/07/18 | 4,204.11 | 40.482075 | 45.526749 | 100.549568 | 32.28% | 7.01% | 2.76% | 7.30% |
| 01/08/18 | 4,132.15 | 38.693672 | 54.460316 | 106.473717 | -1.73% | -4.52% | 17.92% | 5.72% |
| 01/09/18 | 2,913.98 | 40.100086 | 54.197548 | 108.824539 | -34.93% | 3.57% | -0.48% | 2.18% |
| 01/10/18 | 2,976.74 | 41.920834 | 52.545734 | 101.631104 | 2.13% | 4.44% | -3.10% | -6.84% |
| 01/11/18 | 3,363.00 | 44.127197 | 42.874989 | 105.51326 | 12.20% | 5.13% | -20.34% | 3.75% |
| 01/12/18 | 4,307.54 | 41.784615 | 38.003677 | 97.062691 | 24.75% | -5.45% | -12.06% | -8.35% |
| 01/01/19 | 3,585.62 | 42.47295 | 40.099731 | 99.795776 | -18.34% | 1.63% | 5.37% | 2.78% |
| 01/02/19 | 2,506.85 | 40.010876 | 41.716343 | 107.058517 | -35.79% | -5.97% | 3.95% | 7.02% |
| 01/03/19 | 3,230.78 | 41.352219 | 45.960178 | 113.187584 | 25.37% | 3.30% | 9.69% | 5.57% |
| 01/04/19 | 3,756.07 | 43.671585 | 48.553986 | 125.337448 | 15.06% | 5.46% | 5.49% | 10.20% |
| 01/05/19 | 4,766.18 | 43.733891 | 42.359833 | 118.696289 | 23.82% | 0.14% | -13.65% | -5.44% |
| 01/06/19 | 3,839.50 | 45.327293 | 48.073021 | 129.037964 | -21.62% | 3.58% | 12.65% | 8.35% |
| 01/07/19 | 2,784.49 | 47.215191 | 51.745522 | 131.263092 | -32.13% | 4.08% | 7.36% | 1.71% |
| 01/08/19 | 2,954.22 | 49.377247 | 50.701103 | 132.794647 | 5.92% | 4.48% | -2.04% | 1.16% |
| 01/09/19 | 3,811.15 | 48.838982 | 54.607025 | 134.367615 | 25.47% | -1.10% | 7.42% | 1.18% |
| 01/10/19 | 4,373.94 | 49.187031 | 60.651173 | 138.562057 | 13.77% | 0.71% | 10.50% | 3.07% |
| 01/11/19 | 3,970.15 | 48.256237 | 65.159286 | 146.303467 | -9.69% | -1.91% | 7.17% | 5.44% |
| 01/12/19 | 2,704.10 | 50.392025 | 71.810928 | 152.93013 | -38.40% | 4.33% | 9.72% | 4.43% |
| 01/01/20 | 3,225.52 | 53.168819 | 75.689438 | 165.081131 | 17.63% | 5.36% | 5.26% | 7.65% |
| 01/02/20 | 3,714.24 | 48.698631 | 66.849083 | 157.109772 | 14.11% | -8.78% | -12.42% | -4.95% |
| 01/03/20 | 4,515.55 | 40.286304 | 62.333187 | 153.357574 | 19.54% | -18.96% | -6.99% | -2.42% |
| 01/04/20 | 4,076.60 | 42.145813 | 72.018127 | 174.264206 | -10.23% | 4.51% | 14.44% | 12.78% |
| 01/05/20 | 2,901.52 | 42.871357 | 77.935486 | 178.192719 | -34.00% | 1.71% | 7.90% | 2.23% |
| 01/06/20 | 2,926.46 | 41.034531 | 89.664169 | 198.444733 | 0.86% | -4.38% | 14.02% | 10.76% |
| 01/07/20 | 3,500.31 | 43.779819 | 104.470566 | 199.907394 | 17.91% | 6.48% | 15.28% | 0.73% |
| 01/08/20 | 4,522.68 | 45.902084 | 126.86692 | 219.916672 | 25.63% | 4.73% | 19.42% | 9.54% |
| 01/09/20 | 3,955.00 | 45.753799 | 114.06501 | 205.590759 | -13.41% | -0.32% | -10.64% | -6.74% |
| 01/10/20 | 2,816.29 | 44.900291 | 107.219749 | 197.907883 | -33.96% | -1.88% | -6.19% | -3.81% |
| 01/11/20 | 2,980.38 | 48.207554 | 117.256203 | 209.246521 | 5.66% | 7.11% | 8.95% | 5.57% |
| 01/12/20 | 3,271.12 | 51.636269 | 130.916153 | 217.977524 | 9.31% | 6.87% | 11.02% | 4.09% |
| 01/01/21 | 4,395.26 | 45.337097 | 130.195908 | 227.327026 | 29.54% | -13.01% | -0.55% | 4.20% |
| 01/02/21 | 4,130.29 | 46.128025 | 119.638947 | 227.738617 | -6.22% | 1.73% | -8.46% | 0.18% |
| 01/03/21 | 2,834.40 | 49.630699 | 120.697144 | 231.593079 | -37.65% | 7.32% | 0.88% | 1.68% |
| 01/04/21 | 2,584.59 | 51.249561 | 129.896423 | 247.712326 | -9.23% | 3.21% | 7.35% | 6.73% |
| 01/05/21 | 3,972.89 | 52.49329 | 123.127892 | 245.256638 | 42.99% | 2.40% | -5.35% | -1.00% |
| 01/06/21 | 4,530.41 | 51.372982 | 135.560883 | 266.715179 | 13.13% | -2.16% | 9.62% | 8.39% |
| 01/07/21 | 3,981.35 | 54.553265 | 144.369934 | 280.508698 | -12.92% | 6.01% | 6.30% | 5.04% |
| 01/08/21 | 3,981.35 | 53.864532 | 150.278961 | 297.216614 | 0.00% | -1.27% | 4.01% | 5.79% |
| 01/09/21 | 2,648.05 | 50.191299 | 140.264328 | 278.096283 | -40.78% | -7.06% | -6.90% | -6.65% |
| 01/10/21 | 2,945.83 | 54.328884 | 148.491837 | 327.122162 | 10.66% | 7.92% | 5.70% | 16.24% |
| 01/11/21 | 2,912.43 | 50.550827 | 163.856491 | 326.10614 | -1.14% | -7.21% | 9.85% | -0.31% |
| 01/12/21 | 4,181.17 | 57.508587 | 176.27623 | 332.365387 | 36.16% | 12.90% | 7.31% | 1.90% |
| 01/01/22 | 4,131.93 | 59.256863 | 173.506531 | 307.323364 | -1.18% | 2.99% | -1.58% | -7.83% |
| 01/02/22 | 2,718.37 | 60.451523 | 163.916931 | 295.276703 | -41.87% | 2.00% | -5.69% | -4.00% |
| 01/03/22 | 2,941.76 | 60.218414 | 173.55864 | 305.314758 | 7.90% | -0.39% | 5.72% | 3.34% |
| 01/04/22 | 3,100.29 | 63.233784 | 156.700745 | 274.823883 | 5.25% | 4.89% | -10.22% | -10.52% |
| 01/05/22 | 4,297.50 | 62.029987 | 147.943787 | 269.22879 | 32.65% | -1.92% | -5.75% | -2.06% |
| 01/06/22 | 3,785.38 | 61.569996 | 136.096451 | 254.927231 | -12.69% | -0.74% | -8.35% | -5.46% |
| 01/07/22 | 2,760.17 | 63.256905 | 161.768814 | 278.660126 | -31.59% | 2.70% | 17.28% | 8.90% |
| 01/08/22 | 3,140.98 | 60.831913 | 156.502945 | 259.532867 | 12.92% | -3.91% | -3.31% | -7.11% |
| 01/09/22 | 3,621.63 | 55.222878 | 137.760773 | 231.665237 | 14.24% | -9.67% | -12.76% | -11.36% |
| 01/10/22 | 4,567.00 | 59.42852 | 152.852661 | 230.899323 | 23.19% | 7.34% | 10.40% | -0.33% |
| 01/11/22 | 4,080.11 | 63.162045 | 147.559555 | 253.787323 | -11.27% | 6.09% | -3.52% | 9.45% |
| 01/12/22 | 2,711.74 | 63.610001 | 129.731918 | 239.220825 | -40.85% | 0.71% | -12.88% | -5.91% |
| 01/01/23 | 3,037.56 | 61.32 | 144.070023 | 247.190857 | 11.35% | -3.67% | 10.48% | 3.28% |
| 01/02/23 | 3,269.96 | 59.509998 | 147.185272 | 248.796829 | 7.37% | -3.00% | 2.14% | 0.65% |
| 01/03/23 | 4,605.38 | 59.720001 | 152.869995 | 253.699997 | 34.24% | 0.35% | 3.79% | 1.95% |
| R | 0.90% | 0.80% | 2.30% | 1.79% | ||||
| STDev | 22.93% | 5.63% | 9.27% | 6.06% | ||||
| Beta | -0.0097298 | -0.0000903 | 0.0034692 | |||||
| Tbill | 0.39% | |||||||
| E(Ri) | 4.688% | 4.750% | 4.773% |
Expert Answer:
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ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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