Q1. Calculate the value of your respective company using two stage dividend discount model. For the valuation you need variables dividend, growth rate and required rate of return. • Dividend: For dividend use the current dividend (2019) as D0 and then calculate the future dividend. • Growth rate: Use the sustainable growth rate as calculated in task 1, and then use this growth rate for the next five year, after five years use half (1/2) of previous growth as constant growth for the remaining period. • Required rate of return: Use CAPM for the calculation of required rate of return. You can calculate the variables of required rate of return as: o Risk free rate use the T-bills rate of the respective country of your company i.e. US or UAE etc. o Expected market return, you can use the expected or last year market rate of return of the respective market i.e. NYSE or Dubai financial market etc. o Beta of the company: you can find beta from stock market. o All the above variables you can find from respective stock market. Q2. Calculate the Price multiples ratios P/E, P/BV, P/S and P/CF for current year and compare it with the last year (assume last year as industry average). Determine your company is undervalued or overvalued. You can find the price of the company from the annual report or from the stock exchange. Please use the price carefully, if your company financial year ended on 31.03.19 then use price of stock on 31.03.19 and for 2018 use the previous year price. Q3. Calculate the value of your respective company using two stage free cash flow to equity (FCFE) model. For the valuation you need variables FCFE, growth rate and required rate of return. • Growth rate: Same procedure as Question 1. • Required rate of return: Same procedure as Question1. • FCFE: For FCFE use the following assumptions: o Use the sale of 2019 as current sale then forecast the sale using growth rate as mentioned in question 1 for next five years. o Use the income of 2019 as current income then forecast the income using growth rate as mentioned in question 1 for next five years. o Increase the working capital (current assets – current liabilities) using the growth rate mentioned in question 1 for next five years. o Increase the non-current assets (all) using the growth rate mentioned in question 1 for next five years. o For borrowing add 40% of changes in (WCI + FCI).