Use Microsoft Excel to conduct your analysis, calculate values and plot figures. Write-up a report of the answers, the write-up report should summarize the answers, show final results and provide all the figures. -The Excel spreadsheet should contain all the formulas (not just numbers) in the calculation steps.

Question:

Select one company from DJIA constituents.

(a) Using the information on the Bloomberg terminal and Value Line investment report, calculate the intrinsic value using multistage dividend discount model and free cash flow to firm model in Excel and suggest your "1-Year Target Price" for the selected firm. Your models should contain at least two stages. Value line reports for DJIA 30 stocks have been posted. You need to illustrate any assumptions you make.

(b) Download "Analyst Recommendations" for the firm selected in part (a) from Bloomberg terminal.

Compare and discuss results of your excel models and those downloaded from Bloomberg.