Question: Using the stocks in your initial portfolio, prepare a valuation of each stock and the initial portfolio using zero, constant or variable growth models with

Using the stocks in your initial portfolio, prepare a valuation of each stock and the initial portfolio using zero, constant or variable growth models with a market return at 8% and at 12%. Stocks Portfolio (Note that the growth rate must be less than the required rate of return) Make sure you list the date of the valuation and the closing share price of your firms stock. Each firms required rate of return will depend on its beta.

*Make sure you list the date of the valuation and the closing share price of your firms stock.

Is the stock of each of these companies over or undervalued?

What is the expected return using the CAPM Model?

Can you show me how you came up wit the figures?

Company

Ticker

Number of Shares

Price as of 1/12

Commison Fee

Total Investment

Beta

Prices as of 3/16

Wells Fargo

WFC

3,650

54.8

10

200,030.00

0.97

59.32

Dominion Power

D

2,650

75.28

10

199,502

0.25

76.8

General Motors

GM

3,650

37.51

10

199,938.30

1.33

37.08

Apple

Appl

1,675

119.25

10

199,753.75

1.24

140.69

Deere

DE

1,900

105.17

10

199,823

0.73

110.73

Cash

952.96

1,000,000

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