Explain the inputs that you used to come up with a discount rate based on the CAPM.

Explain the inputs that you used to come up with a discount rate based on the CAPM.
April 30, 2021 Comments Off on Explain the inputs that you used to come up with a discount rate based on the CAPM. Uncategorized Assignment-help
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Resources: Use the “311 S 2021 DCF and Divs” worksheet on Laulima as a framework for coming up with your valuations for CSCO. Use Yahoo Finance or another finance site for basic numbers to input. Use the textbook as a reference. Be aware of my basic color-coding scheme in the spreadsheets: •Light blue are cells needing inputs. •Yellow cells are calculated, if you wish to change the value in these cells, see if you can find a light blue cell to change to get your desired result. Or, change a cell to light blue if you wish to hard key an input into it. Output and structure: The paper should be about 2-3 pages long, with 5 main paragraphs. The writing should be in full sentences, but need not be fancy. Paragraph 1) Your overall conclusion. What price do you think the stock is worth today? Given that price tell me if I should buy or sell the stock. Your 3 valuation approaches may give very different price conclusions. Tell me how you settled on the price you think the stock is worth. (Average? Preference of one method over another?) Paragraph 2) Explain the inputs that you used to come up with a discount rate based on the CAPM. You can simply use the current beta and 10-year rates, or you can adjust them if you wish. Just explain why you adjusted.