S a financial analyst working in a London Investment bank and prepare a report valuing the Morrison
Prepare a report valuing the company using:
a)Price-Earnings Ratio (5%)
b)Discounted Cash flow model (5%)
c)Dividend Valuation model (10%)
d)Market capitalization (5%)
f)Net Asset Value (5%)
g)If you were using the Modigliani and Miller Model of capital structure (assuming taxes exist), describe the approach you would take to value a company. (You need not use real life calculations to answer this question) (10%)
What are the advantages and disadvantages of the above methods? (35%)
Compare your values and discuss why differences may arise between various methods.(15)
These topics will definitely require share price information and accounting data. Annual reports may also be useful. Do not be afraid to use macro economic data to back up any valuation. Refer to the financial literature where appropriate. Also clearly identify any limitations you may have your report.
This essay encouraged not using either overseas companies or financial companies as this might add more complex dimensions to the work.
The references must very academic which you can use books, eBooks, Financial Times, FAME CD ROM, FACTIVA, ABI Proquest, EBSCO, the Internet such as YAHOO FINANCE, or any other sources to provide relevant information where necessary.
Please explain the sources of your data and any assumptions, which have been made. After finish this 4000 word essay, please put the formula which have used in this paper and the calculation process of the formula in the appendix.
Do not put the references on the bottom of the pages.
The references must have 20 at least.