Security analysis | Business & Finance homework help

Has to be done in Excel

Valuate the stock using dividend discount model and multi period dividend discount model. (NRG Energy) NRG 

The following questions need to be answered; 

1.  Run the regression of the stock (you are assigned) return on market return in Excel (Hint: click on Tools in the menu bar, choose Data Analysis and then double lick regression.  If it does not show Data Analysis in the drop-down list, click Add-ins on the drop-down list.  When the Add-Ins dialog box pops up, click the box in front of Analysis ToolPak, and then click the OK button.  The Data Analysis add-in will be installed.  Report your results: interpret the coefficients, t-statistics and R2. Discuss the estimated beta.

2.  Estimate the expected return of the stock you are assigned using CAPM (Please provide details on your estimation. You need to estimate average annualized risk free rate and market risk premium. A reasonable risk-free rate should be between 1%-3% and reasonable market risk premium should be between 5%-9%). Discuss your rationale on the estimated risk-free rate, market risk premium, and expected return.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more